MASTER 

NEGATIVE 

NO.  95-82475 


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Author: 

U.S.  Federal  Trade 
Commission 

Title: 

Report  on  tiie  woolen  rag 
trade.  June  30,  1919 

Place: 

Washington,  D.C. 

Date: 

1920 


Q^^^Hl^-fn 


COLUMBIA  UNIVERSITY  LIBRARIES 
PRESERVATION  DIVISION 

BIBLIOGRAPHIC  MICROFORM  TARGET 


MASTER   NEGATIVE  # 


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360* 
5Un343' 


U.  S.     Fcdcnil  trade  commission. 

...  Report  on  the  Aypolcn  ja^  .tiadt*.  June  30,  1919. 
Wasliington,  Govt.  prirTt.  off.,  1920. 

90  11.  incl.  tables,  diagrs.     24r"'. 

At  head  of  title:  I'cdcral  trade  commission. 

"Tliif*  report  covers  certain  information  obtained  at  the  rcqnest  of  the 
War  iiuUistrics  board,  for  its  nsc  in  regulating  the  prices  of  woolen  rags. 
The  preparation  and  issue  of  this  report  was  authorized  by  resolution  of 
the  commission  on  June  30,  1919,  and  the  report  is  therefore  issued  as  of 
that  date.  The  compilation  of  the  data,  which  were  already  on  file,  and 
the  preparation  of  the  report  was  subsequent  thereto." — p.  3. 

1.  \\jool  trade  and  industry— U.  S.  2.  Rags.  i.  U.  S.  War  indus- 
tries bojud.    H.  Title,    III.  Title:  Woolen  rag  trade,  Report  on  the. 


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FEDERAL  TRADE  COMMISSION 


REPORT 


ON 


THE  WOOLEN  RAG  TRADE 


JUNE  SO.  1919 


WASHINGTON 

GOVERNMENT  PUNTING  OFRCE 

1920 


Columbia  Winittviitp 

in  tfie  Cttp  of  ^eto  $orfe 


LIBRARY 


School  of  Business 


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FEDERAL  TRADE  COMMISSION 


REPORT 


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f. 


ON 


THE  WOOLEN  RAG  TRADE 


JUNE  30,  1919 


WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 

1920 


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JuNB  30, 1919. 


ACKNOWLEDGMENT. 


f 


In  the  conduct  of  the  investigation  and  the  preparation  of  the  report  especial  ac- 
knowledgment is  made  by  the  Commission  to  Mr.  R.  R.  Loening  of  New  York. 
2 


(I 


(*• 


i     = 


II 


LETTER  OF  SUBMITTAL. 


FEDERAL  TRADE  COMMISSION. 


William  B.  Colveb,  Chairman, 
John  Franklin  Fort. 
Victor  Murdock. 
Houston  Thompson. 


J.  P.  YoDiR,  Secretary. 


June  30,  1919. 
To  THE  Congress  of  the  United  States: 

The  Federal  Trade  Commission  herewith  submits  a  report  on  the 
Woolen  Rag  Trade.  This  report  covers  certain  information  obtained 
at  the  request  of  the  War  Industries  Board,  for  its  use  in  regulating 
the  prices  of  woolen  rags.  The  preparation  and  issue  of  this  report 
was  authorized  by  resolution  of  the  Commission  on  June  30,  1919, 
and  the  report  is  therefore  issued  as  of  that  date.  The  compilation 
of  the  data,  which  were  already  on  file,  and  the  preparation  of  the 
report  was  subsequent  thereto. 

The  abnormal  demand  for  wool  created  by  the  war,  coupled  with 
a  shortage  of  wool  at  points  where  it  was  available  for  manufacturers, 
made  it  necessar}'  to  increase  the  use  of  substitutes  for  raw  wool. 
The  most  important  available  substitutes  existed  in  the  ''shoddy" 
or  ''reworked  wool  fiber"  derived  from  woolen  rags  and  from  trim- 
mings ("clips")  produced  in  the  cutting  up  of  new  woolen  cloth  for 
the  manufacture  of  woolen  garments. 

The  Government,  to  assure  itself  a  sufficient  supply  of  wool  for 
military  purposes,  on  April  24,  1918,  commandeered  the  1918  clip 
of  domestic  wool,  and  later  assumed  a  complete  control  of  its  distri- 
bution. As  a  result  of  such  measures  there  was  little  wool  left 
available  for  civilian  use.  The  late  summer  of  1918  found  manu- 
facturers of  woolen  cloth  for  civilian  use  in  the  position  where, 
according  to  Government  announcements,  they  would  have  to  rely 
on  "shoddy"  or  "reworked  wool"  for  their  principal  supply  of  raw 
material.  Thus  woolen  rags  suddenly  became  the  chief  raw  material 
in  one  of  the  leading  industries. 

As  a  result,  the  Woolen  Rag  Trade,  which  involves  the  collection 
and  preparation  of  woolen  rags  for  the  making  of  wool  shoddy, 
acquired  rapidly  a  great  public  importance,  and  there  developed  in 
the  trade  certain  Conditions  requiring  immediate  Governmental 
regulation  in  order  to  protect  the  general  public  welfare.  This  was 
especially  the  case  with  respect  to  prices.  Current  prices  on  leading 
and  basic  classes  of  woolen  rags  showed  such  advances  as  300  per 
cent,  400  per  cent,  and  almost  500  per  cent  over  the  year  preceding 
the  outbreak  of  the  war  in  Europe. 

The  War  Industries  Board,  through  its  W^oolens  Section,  took 
action  durmg  July,  1918,  to  control  prices  and  regulate  the  trade 

3 


4  LETTER  OF  SUBMITTAL. 

by  promulgating  its  first  list  of  maximum  prices.  At  the  same  time 
it  requested  the  Federal  Trade  Commission  to  undertake  an  investiga- 
tion of  the  whole  rag  situation,  for  guidance  in  futm-e  action. 

This  report  embodies  most  of  the  information  thus  collected. 
After  a  statement  of  the  relation  of  the  manufacture  of  shoddy  to 
the  Woolen  Kag  Trade,  the  report  gives  a  brief  account  of  the  develop- 
ment of  that  trade,  describes  the  origin  and  kinds  of  commodities 
dealt  in,  and  the  nature  of  the  different  functions  performed  by  the 
various  dealers,  the  course  of  prices,  the  profits  of  dealers,  and  also 
presents  a  comprehensive  classification  of  grades  adapted  to  use  in 

the  trade. 

Price  data  furnished  by  the  Woolens  Section  of  the  War  Industries 
Board,  and  price  information  collected  by  the  Commission's  agents 
directly  from  the  records  of  dealers,  are  presented  together  with  a 
detailed  discussion  of  the  nature  of  the  dijfferent  price  changes. 

While  the  prices  of  woolen  rags  and  clips  advanced  to  high  levels 
in  1917,  it  appears  that  the  dealers  whose  records  were  examined 
made  a  lower  rate  of  profit  during  1917  (the  latest  year  for  which 
such  information  was  available)  than  in  earlier  years  when  prices 
were  materially  lower.  Apparently,  the  reason  for  this  was  the 
increased  investment  required  to  handle  rags  when  prices  were  high. 
The  annual  rate  of  "turnover''  (i.  e.,  the  relation  of  receipts  from 
sales  to  investment)  dropped  from  five  times  in  1915  to  three  in 
1917.  The  increase  in  prices  went  chiefly  to  pay  for  the  increased 
labor  cost  of  collecting  the  rags,  before  they  came  into  the  hands 
of  the  sorters  and  graders  who  prepared  them  for  sale  to  shoddy 
manufacturers. 

Detailed  information  on  the  expenses  of  operation,  and  the  earnings 
of  12  of  the  principal  firms  engaged  in  the  Woolen  Kag  Trade  is  also 
given.  This  information,  gathered  directly  from  the  records  by  the 
Commission's  accountants,  covers  transactions  for  the  years  1916-1917 
of  firms  which  showed  on  their  books  a  total  investment  in  1917  of 
about  $5,750,000,  and  whose  sales  during  1917  amounted  to  about 
$18,500,000. 

A  careful  study  on  the  classification  of  grades  and  names  of  used 
rags  and  clips  was  undertaken  at  the  request  of  the  Woolens  Section 
for  its  use  in  making  further  regulations.  The  termination  of  the 
war  made  it  unnecessary  to  continue  Governmental  control  of  the 
industry.  Since,  however,  in  its  bearing  on  some  of  the  problems 
continually  encountered  this  material  has  considerable  value  to  the 
trade  at  large,  it  is  included  in  the  report. 

A  brief  analysis  is  given  in  the  report  of  the  export  trade  on  rags, 
and  the  effect  of  the  prohibitions  placed  by  the  War  Trade  Board  on 
such  exports. 


LBTTEB  OF  SUBMITIIAL.  § 

In  conclusion  it  may  be  noted  that  while  the  situation  which  made 
the  collection  of  all  woolen  rags  (and  clips)  a  matter  of  highest 
importance  no  longer  exists,  nevertheless,  the  trade  would  be  benefited 
b}'  an  increased  degree  of  standardization  of  its  product. 
Respectfully, 

William  B.  Colver,  Chairman, 
John  Franklin  Fort. 
Victor  Murdock. 
Huston  Thompson. 


.*        f 


4' 


TABLE  OF  CONTENTS. 


1 .  Introduction n 

1.  Origin  of  InveBtigation n 

2.  The  woolen  rag  trade  and  its  relation  to  shoddy  (or  reworked  wool) 

manufacture X4 

The  shoddy  (or  reworked  wool)  industry 14 

Development  of  the  woolen  rag  trade 17 

Origin  and  kinds  of  commodities  dealt  in  by  the  woolen  rag 

trade jj 

Industrial  organization  of  the  woolen  i»g  trade 19 

3.  Status  of  price  fixing  at  time  of  Commission's  investigation 22 

II.  The  Character  and  Scope  op  the  Commission's  Investigation 24 

1.  Necessary  lines  of  investigation 24 

2.  Character  of  records 25 

3.  Number  And  nature  of  firms  examined 26 

III.  Information  Collected  by  the  Commission 27 

1.  Price  information  obtained 27 

Published  prices 27 

Prices  reported  to  the  War  Industries  Board 29 

Prices  collected  directly  by  the  Commission 29 

Discussion  of  the  price  information 31 

2.  Cost  and  earnings  information  obtained 37 

Costs  of  operation 37 

Relation  of  cost  of  operation  to  sales 40 

Investment ,,,,,,.  40 

Relation  of  net  earnings  to  investment 41 

Relation  of  sales  to  investment  (annual  rate  of  turnover) 42 

Relation  of  annual  rate  of  turnover  to  annual  rate  of  earnings . .  42 

3.  Classification  of  grades,  and  names  of  used  rags  and  clips 43 

The  confusion  due  to  lack  of  definite  and  accepted  standards.  43 

The  classification  compiled  by  the  Federal  Trade  Commission.  45 
The  application  of  a  standard  classification  to  the  trading  in 

ungraded  rags  and  clips 4^ 

IV.  Effect  op  the  Export  qp  Wool  Rags  on  the  Domestic  Rag  Market.  50 
V.  Summary  and  Conclusions 52 


LIST  OF  TABLES. 


Table  1.  Prices  of  "Rough  cloth  -"  and  "Soft  woolen"  used  rags  and  " Fine  mer- 
chant tailor-"  clips,  1904-1911 07 

Table  2.  Prices  of  "Rough  cloth"  and  "Soft  woolen-"  rags  and  "Fine  mer- 
chant tailor*'  clips  Jan.,  1913-Mar.,  1919 28 

Table  3.  Comparison  of  prices  from  different  sources,  1917  and  1918 30 

7 


8 


y 


TABLE  OF   CONTENTS. 


Table  4.  Comparison  of  the  prices  of  ''Blue  serge"  rags  and  ''Blue  senre^'  ^^' 

clips  191»-1918 * 

Table  5.  Costs  of  operation  of  9  firms  1914-1917 37 

Table  6.  Percentage  relation  of  cost  items  to  total  cost  of  opemtion  of  9  finns 

-'■''■'■4— x9x7 .............  ^_ 

Table  7.  Costs  of  operation  of  12  firms  1915-1917 3g 

Table  8.  Percentage  relation  of  cost  items  to  total  cost  of  operation  (rf  1*2  finna 

J."  J.U— iJ.Jf17  ............ 

'\ft 

Table    9.  Relation  of  sales  to  cost  of  operation  of  9  firaw  1914-1917 . . . . . ...  40 

Table  10.  Relation  of  sales  to  cost  of  operation  of  12  firms  1915-1917 ... ] . . . . . .  40 

Table  11 .  Relation  of  net  earnings  to  investment  of  9  firms  1914-1917 . . * . .   . . .  41 

Table  12.  Relation  of  net  earnings  to  investment  of  12  fiitna  1915-1917  ...... . .  41 

Table  13.  Relation  of  sales  to  investment  of  9  firms  1914-1917 42 

Table  14.  Relation  of  sales  to  investment  of  12  firms  1915-1917 42 

Table  15.  Relation  of  annual  rate  of  turnover  to  annual  rate  of  e^niings 42 

Table  16.  Comparison  of  "Skirted^'  products  obtained  from  a  lot  of  " Rough 

cloth  "  with  an  expert's  estimate  of  normal  contents 47 

Table  17.  All  products  obtained  from  a  sample  lot  of  "Rough  clothi'!!.. 48 

Table  18.  Comparison    of    graded    products    derived    from    a  lot   of  ''Soft 

woolens^'  with  an  expert's  estimate  of  normal  contents 4g 

Table  19.  All  products  obtained  from  a  sample  lot  of  "Mixed  softs"  *....**  49 

Table  20,  Exports  of  woolen  rags  July  1,  1911-Sept  30,  1919 50 

Table  21,  Imports  of  woolen  rags  July,  1912-June,  1918 52 


LIST  OF  CHARTS. 


Chart  A.  Actual  prices  of  used  woolen  rags 3j 

Chart  B.  Relative  prices  of  used  woolen  rags '!.!!]!!!!.!!!!!!"  32 

Chart  C.  Actual  prices  of  woolen  clips 33 

Chart  D.  Relative  prices  of  woolen  clips .!!"........[  84 


TABLE  OF  CONTENTS. 


9 


PgarA 

ExHisrr  VII.  Order  of  Price  Fixing  Committee  of  War  Industries  Board,  Aug. 

21,  1918,  fixing  maximum  prices  on  woolen  clips 5g 

ExHiBrr  VIII.  Order  of  Price  Fixing  Committee  of  War  Industries  Board,  Aug. 

22,  1918,  fixing  maximum  prices  on  "Reworked  wool  or  fiber''  (shoddy) 59 

Exhibit  IX.  Published  price  quotations  on  woolen  rags  and  clips,  1904-1911. .        60 
Exhibit  X.  Published  price  quotations  on  woolen  rags  and  clips,  Jan    1913- 

Apr.,  1919 : gj 

ExHiBir  XI.  Prices  compiled  from  reports  to  War  Industries  Board  made  by 
rag  dealers  July-Sept.,  1918 74 

Exhibit  XII.  Prices  compiled  from  information  collected  from  the  records  of 
dealers  by  the  Federal  Trade  Commission 75 

Exhibit  XIII.  Classification  of  woolen  rags  compiled  by  the  'Federal  Trade 
Commission «- 


LIST  OF  EXHIBITS. 


Exhibit  I.  Correspondence  between  War  Industries  Bovd  and  Boston  Wool 
Trade,  Apr.  27, 1918,  relating  to  offer  of  stocks  of  wool  to  the  Government         54 

Exhibit  II.  Announcement  of  War  Industries  Board  in  the  Official  Bulletin, 
Sept.  13,  1918,  on  the  need  to  conserve  wool  cloth '        55 

Exhibit  III.  Announcement  of  the  War  Industries  Board  in  the  Official  Bulle- 
tin  Nov.  5, 1918,  in  refutation  of  rumors  of  wool  allocation  for  civilian  needs  56 

Exhibit  IV.  Order  of  Railroad  Administration,  in  Official  Bulletin,  Aug.  19, 
1918,  directing  prompt  movement  of  woolen  rags  and  shoddy  '        57 

Exhibit  V.  Order  issued  July  12, 1918,  by  Woolen  Rag  and  Fiber  Adninistiutor 
of  War  Industries  Board,  fixing  maximum  prices  on  woolen  rags,  and  requir- 
ing certain  reports j.^ 

Exhibit  VI.  Order  of  Price  Fixing  Committee  of  War  Industries  Boaid,  Aiif* 
19, 1918,  fixing  maximum  prices  on  woolen  rags 55 


REPORT  OF  THE  FEDERAL  TRADE  COMMISSION 
ON  THE  WOOLEN  RAG  INDUSTRY. 


■•■'-»    .  ■!  % 


I.  INTEODXTCTION. 

U  Origin  of  investigation. 

The  abnormal  demand  created  by  the  war  for  wool  for  the  uses  of  the 
Army,  Navy,  and  Red  Cross  work,  and  the  usual  demand  for  wool  for 
civilian  use,  coupled  with  a  shortage  of  wool  at  points  where  it  was 
available  for  manufacturers  (due  to  difficulties  of  transport  from  the 
sources  of  production,  and  to  the  commandeering  by  foreign  Govern- 
ments of  wool  of  foreign  origin  usually  available  to  the  American  mar- 
ket), had  the  effect  of  making  new  wool  available  to  American  mills 
both  unusually  scarce  and  high  priced.  It  became  necessary  to  use 
substitutes  to  meet  the  deficit  in  the  supply  of  raw  wool.  The  most 
important  available  substitute  existed  in  the'* shoddy''  (or  "reworked 
wool  fiber")  derived  from  used  woolen  rags,  and  from  the  trimmings 
C* clips")  produced  in  the  cutting  up  of  new  woolen  cloth  incident 
to  the  manxifaoture  of  woolen  garments.  The  term  ''rags"  is  often 
applied  indiscriminately  not  only  to  used  material  but  to  new  material 
as  weU.  In  this  report  wherever  a  need  exists  for  distinguishing 
between  these  two  general  classes,  the  term  "used  rags"  will  apply  to 
Used  or  worn  material,  and  "clips"  to  new  or  imwom  material. 
'On  April  5,  1918,  the  Boston  wool  trade  offered  to  the  Government 
through  the  War  Industries  Board,  all  its  unsold  wools  at  market 
values  as  of  that  date.  This  offer  was  not  accepted.  On  April  25, 
1918,  they  offered  to  the  Government  all  their  imsold  wool  and  tops 
included  in  the  offering  of  April  5,  and  also  all  foreign  wools  bought 
since  that  date  and  not  under  the  Government's  option,  on  the  fol- 
lowing terms: 

July  30,  1917,  prices  to  be  paid  for  all  wool  costing  dealers 

July  30  prices  or  less.     For  all  wool  shown  to  have  cost  dealers 

'=       price  in  excess  of  July  30  prices,  the  Government  to  pay  5  per 

.    cent  above  cost  on  all  grades,  this  total  in  no  case  to  exceed 

,..,    April  5  prices. 


.1 1 1 


On  April  27,  1918,  the  Government  accepted  this  offer  and  re- 
quested that  other  trade  colters  whose  wools  were  offered  be  notified. 
(See  Appendix,  Exhibit  I.)  On  May  20,  1918,  the  War  Industries 
Board,  through  its  Wool  Division,  promulgated  the  Government 
regulations  for  handling  the  wool  clip  of  1918,  which  assumed  a  com- 
plete control  of  its  distribution. 

11 


12 


REPOBT  ON  WOOLEN  RAG  TRADE. 


The  taking  of  such  steps  was  to  assure  a  sufficient  supply  of  wool 
for  military  purposes.  The  need  was  brought  home  to  the  coimtry 
at  large,  in  the  course  of  testimony  given  on  August  7,  before  the 
Committee  on  Military  Affairs  of  the  United  States  Senate  by  Gen. 
Peyton  C.  March,  Chief  of  Staff  of  the  United  States  Army.  He 
stated,  incidental  to  the  discussion  of  the  question  of  uniforms  for 
the  new  Army: 

'/Just  to  give  one  instance,  take  the  mere  question  of  new 
uniforms  for  this  new  Army.  We  must  commandeer— and  have 
done  so— all  of  the  wool  of  the  United  States;  and  have  taken 
the  wool  of  the  Argentine.  We  are  going  to  put  the  whole  civil- 
ian population  on  shoddy  for  the  next  year,  but  you  can  not  do 
this  tlung  offhand."^  J      ^         J 

This  statement  received  wide  publicity  in  the  public  press. 

A  month  later  the  chairman  of  the  War  Iiwiustries  Board  in  urging 
upon  the  coimtry  the  necessity  for  the  conservation  of  wool  made 
public  a  statement  of  the  woolen  section  of  that  board  that  there 
was  at  that  time  no  free  wool  available  for  civilian  consumption.  He 
issued  a  warning  that  it  wouki  be  particularly  difficult  to  renew  when 
exhausted  the  then  existing  stocks  of  cloth  and  clothing.  (See  ex- 
tract from  Official  Bidletin,  Sept.  13,  1918,  reprinted  in  Appendix, 
Exhibit  II.) 

The  announcement  then  made  that  there  was  no  free  wool  available 
for  civilian  alk)cation  was  repeated  by  the  chairman  of  the  War 
Industries  Board  in  another  statement  published  shortly  prior  to  the 
signing  of  the  Armistice  (see  extract  from  Official  Bulletin,  Nov.  6, 
1918,  reprinted  in  Appendix,  Exhibit  III),  that  no  allotments  of 
wool  for  civilian  purposes  could  be  considered  for  some  time  to 
come.  Definite  statement  to  this  effect  was  made  for  the  purpose  of 
removing  any  uncertainty  with  respect  to  the  seriousness  of  the 
situation  and  for  the  purpose  of  impressing  upon  the  country  as  a 
whole  the  urgent  necessity  of  the  conserving  of  every  pound  of  wool. 

Thus  the  late  summer  of  1918  found  manufacturers  of  woolen  cloth 
for  civilian  use  in  the  position  where,  according  to  official  Government 
announcements,  they  would  have  to  rely  on  shoddy  (reworked  wool) 
obtained  from  woolen  rags  and  clippings  for  their  principal  supply 
of  raw  material.  This  situation  was  reflected  in  the  announcement  of 
the  Railroad  Administration  (see  extract  from  Appendix,  Exhibit  IV), 
dated  August  15,  1918,  that  it  was  prepared  to  issue  promptly  per- 
mits on  shipments  of  woolen  rags  and  shoddy  and  requiring  the  prompt 
acceptance  and  movement  of  such  shipment  on  a  parity  with  wool. 

In  a  short  space  of  time  woolen  rags  had  become  an  essential  new 
material. 


» Hearings  before  the  Committee  on  MUitary  Affairs,  United  States  Senate,  65th  Cong.,  2d  sess.,  vol. 


REPORT  ON   WOOLEN   RAG  TRADE. 


13 


As  a  result  of  such  conditions,  the  woolen-rag  trade,  which  in- 
volves the  collection  and  preparation  of  woolen  rags  for  the  making 
of  wool  shoddy,  acquired  rapidly  a  public  importance  unprece- 
dented in  its  history.  Coincident  with  this  growth  of  importance, 
there  developed  many  undesirable  features  of  such  a  nature  as  to 
necessitate  some  immediate  gove;-nmental  regulation  of  the  trade  in 
order  to  prevent  the  increasing  abuses  from  seriously  affecting  the  gen- 
eral public  welfare.  Chief  among  such  abuses  was  the  rise  of  prices  to 
heights  which  imposed  undue  burdens  on  the  consuming  public. 
Current  prices  on  leading  and  basic  classes  of  woolen  rags  as  com- 
pared with  the  average  price  for  the  year  preceding  the  commence- 
ment of  the  European  war  in  1914  showed  such  advances  as  300, 
400,  and  almost  500  per  cent. 

The  situation  in  July,  1918,  was  the  more  acute  because  a  year 
previously,  in  the  summer  of  1917,  leading  men  in  the  woolen-rag  trade 
had  sought  to  curb  the  rise  of  prices  by  means  of  a  voluntary  agreement 
between  a  substantial  number  of  dealers.  The  losses  incurred  by 
those  who  observed  the  restrictions,  and  the  profits  derived  by  those 
who  deliberately  disregarded  them,  rendered  the  attempt  so  unsuccess- 
ful that  it  was  abandoned  early  in  1918.  From  that  time  to  the  month 
of  July  transactions  were  wholly  uncontrolled.  Prices  of  some 
grades  increased  50  per  cent  within  the  two  or  three  months,  and  as 
much  as  30  per  cent  within  the  30  days,  preceding  the  10th  of  July, 
1918.  At  that  time  the  United  States  had  in  field  and  camp  an  Army 
of  over  2,000,000  men  and  was  preparing  for  an  additional  2,000,000. 
The  increasing  importance  of  shoddy  (or  reworked  wool),  not  only 
as  a  partial  source  of  wool  for  military  purposes,  but  also  as  practi- 
cally a  complete  substitute  for  raw  wool  for  civihan  use,  rendered  it 
imperative  for  the  War  Industries  Board  to  take  action  to  control 
the  distribution  as  well  as  the  prices  for  both  woolen  rags  and  shoddy. 
Preliminary  steps  to  this  end  were  taken  July  12,  1918. 

The  special  precautions  which  were  taken  at  this  time  for  the 
conservation  and  safeguarding  for  use  in  this  country  of  every  pound 
and  every  scrap  of  wool  are  shown  still  further  by  the  steps  taken  to 
prevent  exportation.  The  War  Trade  Board  had,  a  few  months 
preceding,  placed  an  embargo  on  exports  of  aU  woolen  rags  with  the 
exception  of  five  grades  for  which  there  was  little  or  no  demand  in 
this  country  on  account  of  the  very  inferior  quality  of  shoddy  which 
could  be  made  from  them.  But  the  stringency  of  the  situation  was 
such  that  a  trade  recommendation  was  made  that  the  embargo  be 
extended  to  cover  these  five  grades.  Accordingly,  a  short  time  after 
the  taking  over  of  the  control  of  rags  in  this  country  by  the  Govern- 
ment, a  complete  embai^o  was  placed  on  the  exportation  of  woolen 
rags  (see  p.  53). 


14 


KEPORT  ON  WOOLEN  RAG  TRADE. 


The  general  importance  of  establishing  maximum  prices  and  a 
control  over  the  distribution  of  woolen  rags  and  shoddy  was  con- 
firmed by  the  action  of  Great  Britain.  .A  few  days  after  the  action 
taken  by  this  country,  Great  Britain,  according  to  cable  reports  from 
London  dated  July  17,  1918,  took  complete  control  of  the  rag  and 
shoddy  trades  and  shortly  after,  under  date  of  July  25,  issued  an 
order  of  the  Army  Coimcil,  through  the  Director  of  Raw  Materials, 
fixing  prices  on  woolen  rags  and  shoddies  as  of  market  values  on 
March  31,  1918. 

One  of  the  steps  taken  by  the  War  Industries  Board  to  render 
effective  its  control  of  the  woolen-rag  trade  and  shoddy  industry  in 
this  country  was  to  request  the  Federal  Trade  Commission  to  under- 
take an  investigation  of  the  whole  rag  situation,  for  guidance  in 
future  action.  The  Comniission,  accordingly,  arranged  to  undertake 
the  investigation  and  started  the  work  early  in  September,  1918. 

2.  The  woolen-rag  trade  and  its  relations  to  shoddy   (or  reworked 
wool)  manufacture. 

.  Since  the  main  use  of  woolen  rags  handl(3d  by  the  woolen-r«tg 
trade  is  for  the  manufacture  of  shoddy  (or  reworked  wool),  a  brief 
description  of  that  industry  is  necessary,  before  the  character  of  the 
woolen-rag  trade  can  be  clearly  set  forth. 

The  shoddy  {or  reworked  wool)  industry. — The  raw  material  out  of 
which  wool  shoddy  is  manufactured  consists  of  used  woolen  rags  ,of 
all  kinds;  of  the  trimmings  and  clippings  and  left-over  scraps  or 
pieces  (called  clips)  of  new  material  accumulating  in  tailoring  and 
garment  manufacturing  establishments;  and  of  the  head  and  end 
pieces  (headings),  which  are  cut  off  at  the  textile  mills,  when  a 
^ 'piece"  of  cloth   comes  from  the  loom. 

Fabrics  which  are  made  partly  of  wool  and  partly  of  cotton  are 
first  treated  by  having  the  cotton  carbonized  out  of  them  by  a  chemi- 
cal agent,  such  as  sulphuric  or  hydrochloric  acid,  which  affects  the 
animal  fiber  but  slightly  if  at  all.  They  are  then,  together  with  the 
all-wool  fabric,  passed  through  machines  known  as  ''pickers"  and 
"garnetters,"  which  imravel  and  "tease"  out  the  cloth  structure 
until  it  is  reduced  to  a  fiber.  This  fiber  is  adapted  to  similar  pur- 
poses as  raw  (or  "virgin")  wool,  except  that  the  staple  is  shorter 
and  the  resultant  wool  in  most  instances  is  in  a  dyed  state. 

The  process  was  originated  and  developed  between  the  years  1810 
and  1820  in  Great  Britain.  While  "shoddy"  is  its  most  common 
name,  the  product  is  also  known  by  other  names.  One  of  them, 
"substitute  wool,"  is  clearly  a  misnomer,  for  the  commodity  is  wool. 
It  is,  in  reality,  a  substitute  for  new  wool,  being  actually  woole^ 
cloth  reconverted  into  its  unmanufactured  state.  Names  for  it 
more  descriptive  than  "shoddy"  are  "reworked  wool,"  "recovered 
wool,"  and  "reclaimed  wool." 


REPORT  ON  WOOLEN  RAG  TRADE. 


15 


As  raw  material  in  the  manufacture  of  woolen  cloths  reworked 
wool  is  used  precisely  as  new  wool  is  used.  It  is  not  customary  to 
use  shoddy  alone  in  the  manufacture  of  cloth,  but  it  is  blended  with 
new  wool,  wool  noils  and  flocks,  and  new  wool  waste  obtained  during 
the  manufacture  of  woolen  textiles.  It  is  generally  used  in  an  ad- 
mixture with  new  wool  in  varying  percentages,  depending  upon  the 
quahty  and  texture  of  the  cloth  to  be  produced.  It  can  be  used  in 
the  manufactiu-e  of  all  goods  made  with  wool  with  the  exception  of 
worsted.  It  is  more  commonly  used,  however,  in  the  manufacture 
of  heavy  material  such  as  blankets,  overcoating,  heavy  suitings,  and 
also  in  cheap  suitings,  irrespective  of  weight,  particularly  where 
cotton  is  used  in  connection  with  wool.  Materials  made  with  re- 
worked wool  are  stated  to  be  invariably  harder  and  stiffer  in  texture 
than  those  made  solely  of  new  wool.  Its  judicious  use  in  connec- 
tion with  new  wool  has  often  resulted  in  the  production  of  cloth 
which  is  of  as  good  a  texture  as  much  of  that  made  entirely  of  new 
wool  and  is  also  fuUy  as  serviceable.  It  is  possible  for  cloth  made 
with  a  suitable  admixture  of  high  grade  shoddy  to  be  preferable  to 
cloth  made  entirely  of  a  poor  quality  of  new  wool.  As  is  evidenced 
by  the  statistics  of  shoddy  manufacture,  a  large  part  of  the  woolen 
clothing  worn  by  the  general  pubUc  is  made  of  materials  which  in- 
clude shoddy  to  some  extent.  The  importance  of  shoddy  to  this 
country  at  the  time  this  investigation  was  instituted  can  be  appre- 
ciated best  when  it  is  realized  that  the  War  Industiies  Board  had 
arranged  specifications  calling  for  the  use  of  50  per  cent  reworked 
and  50  per  cent  new  wool  in  the  manufacture  of  many  of  the  woolen 
materials  then  being  contracted  for  to  be  supplied  to  the  Govern- 
ment for  the  use  of  the  Army.  In  addition  the  War  Industries 
Board  had  restricted  the  allotment  of  new  wool  to  manufacturers 
to  such  an  extent  as  to  necessitate  the  use  of  shoddy  in  greatly  in- 
creased proportions  in  the  manufacture  of  aU  woolen  materials  for 
civilian  consumption  throughout  the  nation. 

It  was  about  the  year  1850  that  the  manufacture  of  shoddy  (or 
reworked  wool)  first  came  into  use  in  the  United  States.  That  was 
some  25  or  30  years  after  its  origin  in  Great  Britain.  It  appears  to 
have  had  a  ready  reception,  for  in  the  year  1859  there  had  been  es- 
tablished in  this  coimtry  some  30  shoddy  producing  estabfishments 
valued,  according  to  data  of  the  time,  at  approximately  $400,000. 
From  that  period  on  various  mills  engaged  in  the  manufacture  of 
woolens  procured  machines  for  making  shoddy  (or  reworked  wool) 
with  a  view  of  using  the  product  in  their  respective  mills.  To-day  it 
is  estimated  that  about  half  of  the  shoddy  (or  reworked  wool)  used 
is  made  by  plants  engaged  solely  in  its  manufactiu'e  and  half  by 
woolen  mills  which  produce  for  themselves  the  shoddy  which  they 
have  occasion  to  use. 


16  REPORT  ON  WOOLEN  RAG  TRADE. 

According  to  the  United  States  Census  of  Manufactures  for  1914 
(the  latest  figures  available)  there  were  84,836,759  pounds  of  shoddy- 
manufactured  in  the  United  States  in  1914.  Of  this,  40,787,349 
pounds  were  reported  to  have  been  produced  for  their  own  con- 
sumption, 893,373  pounds  for  sale  by  establishments  engaged  in 
wool  manufactures,  and  43,156,037  pounds  by  estabhshments  pro- 
ducing it  solely  for  sale.  To  make  the  shoddy  a  total  of  1 19,450,978 
pounds  of  used  rags  and  cHppings  was  required.  During  the  five- 
year  period  1909-1914,  both  the  quantity  of  shoddy  made  and  of 
rags  used  increased  14  per  cent.  "Riere  were  64  establishments 
manufactiuing  wool  shoddy  for  sale,  using  the  services  of  2,391  per- 
sons. The  value  of  products  was  stated  to  be  $7,706,843,  of  which 
$2,406,940  was  the  value  added  by  manufacture  (value  of  products 
less  cost  of  materials).  Of  the  total  cost  of  materials  ($5,299,903) 
rags  and  cHppings  (amounting  to  57,367,962  poimds)  formed  about 
60  per  cent.  During  the  five  year  period  190.9-1914,  there  had  been 
an  increase  in  the  quantity  used  of  32  per  cent  and  its  total  value 
had  increased  17  per  cent. 

On  the  basis  of  certain  reports  obtained  by  the  United  States  Cen- 
sus Bureau  from  shoddy  pickers,  for  the  years  1915,  1916,  and  1917, 
the  total  production  of  wool  shoddy  in  the  United*  States  for  those 
years  is  estimated  as  follows: 

Pounds. 

1915 168,000,000 

1916 160,000,000 

1917 184,000,000 

The  function  of  the  shoddy  industry  to-day  consists  in  supplying 
to  the  woolen  manufacturer  a  raw  material  at  a  less  cost  than  new 
wool  and  in  a  state  to  adequately  serve  the  precise  piu-pose  for  which 
he  desires  to  use  it.  As  a  matter  of  practical  manufactiu'ing  a 
woolen  mill  can,  by  using  certain  colored  shoddy,  save  itself  the 
expense  of  dyeing,  which  would  have  to  be  incurred  with  new  wool. 
A  high  degree  of  technical  experience  is  needed  in  the  economical 
production  of  shoddy  in  special  grades  required  for  special  purposes. 
It  involves  the  determination  as  to  how  the  grade  and  shade  of  shoddy 
desired  can  be  best  manufactured,  if  at  all,  out  of  particular  grades  of 
rags,  clips,  or  headings  available.  By  far  the  largest  quantity  of 
raw  material  obtained  for  conversion  into  shoddy  is  that  derived 
from  "new  clippings"  and  old  rags.  In  short,  there  would  be  no 
shoddy  industry  at  all  were  it  not  for  the  available  supply  of  both  new 
and  old  rags  which  for  centuries  had  been  regarded  as  waste.  The  in- 
dustry is,  therefore,  dependent  on  the  woolen  rag  trade  for  its  prin- 
cipal raw  material,  furnished  in  the  form  best  adapted  to  its  manu- 
facturing needs. 


REPORT  ON  WOOLEl^  RAG  TRADE.  17 

Development  erf  woolen  rag  trade. — ^At  the  time  when  the  shoddy  in- 
dustry was  first  established,  shoddy  manufacturers  generally  pro- 
cured their  woolen-rag  materials  direct  from  the  peddlers  and  junk- 
men who  collected  it  and  from  the  places  where  tailoring  clippings 
were  produced.  Sorting  and  grading  of  rags  was  then  part  of  the 
shoddy  manufacturers'  business,  and  not  of  the  business  of  the  col- 
lector. To-day,  this  work  has  become  so  extensive,  the  demands 
for  the  material  have  become  so  large,  and  the  refinements  of  grading 
have  become  so  nimierous,  that  these  functions  have  been  joined  to 
that  of  collection,  and  have  become  a  part  of  the  woolen-rag  trade. 

Authoritative  statistics  are  not  available  showing  the  present  ex- 
tent of  the  woolen-rag  trade.  The  census  of  1910  (Vol.  IV,  Occupa- 
tion Statistics  p.  422)  listed  1,975  rag  dealers  (including  also  rag  ped- 
dlers and  pickers,  and  1,678  rag  sorters).  No  distinction  was  made 
between  the  handlers  of  woolen  rags  and  those  handling  other  fabrics. 

On  the  basis  of  the  reports  obtained  by  the  Census  Bureau  from 
shoddy  pickers,  the  quantity  of  woolen  rags  necessary  to  make  the 
quantity  of  shoddy  production  stated  above  is  estimated  as  follows: 

Pounds. 

1915 225,000,000 

1916 215,000,000 

1917 248,000,000 

In  other  words,  it  takes  about  one  and  one-third  pounds  of  rags 
to  make  a  pound  of  shoddy. 

Since  all  the  work  has  to  be  done  by  hand  the  collection,  sorting, 
and  handling  of  about  250,000,000  poimds  of  woolen  material,  par- 
ticularly as  in  the  case  of  new  rags  where  the  pieces  are  f requentl}'  but 
an  inch  or  two  square,  calls  for  much  human  labor.  To  those  miac- 
quainted  with  the  complicated  gradings  which  have  been  developed 
in  the  growth  of  the  treatment  of  woolen  rags  in  preparation  for 
conversion  into  shoddy,  the  scope  of  the  woolen-rag  trade  to-day  ap- 
pears nothing  short  of  amazing.  It  is  essential  to  an  understanding 
of  the  complex  character  of  the  present  trade  in  woolen  rags  to  take 
into  account  the  various  sources  and  kinds  of  commodities  in  whicli 
it  deals. 

Origin  and  hinds  oj  commodities  dealt  in  hy  tJie  woolen  rag  trade. — The 
general  source  of  supply  of  all  used  woolen  materials  throughout 
the  United  States  is  the  heterogeneous  collection  of  old  garments, 
etc.,  collected  by  both  the  country  and  the  cit}'  peddler  and  disposed 
of  by  him  to  the  junkmen  throughout  the  country.  This  product 
has  been  given  the  general  trading  designation  of  ''Mixed  country 
Tags."  It  is  the  elementary  stock  from  which  are  derived  the  broad 
classifications  into  which  all  old  woolen  rags  are  divided.  The  stand- 
ard price  of  ''Mixed  country  rags"  at  the  beginning  of  1918  was  2 

141957—20 2 


18 


KEPORT  ON  WOOLEN  RAG  TRADE. 


cents  a  pound.  The  collection  consists  of  cotton  as  well  as  woolen 
rags,  rubberized  materials,  and  kindred  products.  The  percentage 
of  woolen  rags  which  is  obtained  on  the  average  out  of  100  pounds  of 
''Mixed  country  rags"  is  fairly  definite  but  varies  somewhat  with  the 
section  of  the  country  in  which  the  rags  are  gathered.  Th<'  percent- 
age of  woolen  materials  ranges  usually  in  the  neighborhood  of  20-30 
per  cent  of  the  total  weight  of  ''Mixed  country  rags."  All  used 
woolen  materials  are  sorted  first  into  two  principal  classifications: 

(1)  Soft  woolen  materials,  usually  designated  as  ''Soft  woolens'' 
or  "Mixed  softs,"  which  consist  of  knitted  materials,  serges,  and 
merinos,  being  chiefly  clothing  worn  by  women. 

(2)  Hard  woolen  rags,  usually  termed  "Rough  cloth,"  which  con- 
sist of  materials  used  in  men's  wear,  principally  worsteds.  These 
two  classifications  are  further  subjected  to  extensive  subclassifica- 
tion  and  grading.  In  addition  to  these  two  principal  classifications 
there  are  derived  from  "Mixed  country  rags,"  five  classifications  of 
mmor  importance,  which  are  not  subjected  to  the  extensive  sorting 
and  grading  which  takes  place  with  respect  to  "Soft  woolens"  and 
"Rough  cloth":  Such  classifications  are  "Carpets,"  "Felts  " 
'  'Haircloths, "  '  'Linseys, "  and  '  'Seams. " 

New  woolen  materials,  as  ah-eady  stated,  are  mainly  divided  into 
"clippings,"  which  comprise  remnants  and  i)ieces  derived  from  the 
cutting  tables  in  manufacturing  and  tailoring  establishments,  and 
"headings,"  which  are  the  head  and  end  pieces  which  come  from 
mills  manufacturing  woolen  piece  goods.  "  Clippings  "  far  exceed 
"headings "'in  importance.  The  two  general  divisions  of  clippings 
are  "Ungraded  clips,"  and  "Graded  clips."  "Ungraded  clips"  are 
roughly  divided  into  mixed  cuttings  of  woolen  and  cotton  materials, 
cuttings  obtamed  from  makers  of  men's  wear,  cuttings  obtained  from 
makers  of  women's  wear,  cuttings  from  materials  used  for  upholster- 
ing carriages  and  automobiles,  and  cuttings  from  felts.  "Graded 
clips"  comprise  as  many  divisions  and  subdivisions  as  there  are  kinds 
and  shades  of  woolen  materials  in  existence.  Ungraded  headings 
are  first  sold  in  the  state  originally  gathered.  After  they  come  into 
the  hands  of  dealers  they  are  usually  mixed  with  clippings  of  the  same 
sorts  of  materials  which  the  dealer  has  on  hand  and  are  graded  with 
them. 

While  there  are  but  a  few  primary  general  classifications,  three  of 
them,  "Soft  woolens"  and  "Rough  cloth"  rags  and  "Ungraded 
clips,"  are  subject  to  many  further  subdivisions.  Thus  one  dealer 
who  sold  to  shoddy  manufacturers  was  found  to  carry  175  grades  on 
his  list,  another  118,  the  price-fixing  committee  of  the  War  Industries 
Board,  in  its  price  regulations  issued  August  19,  1918,  listed  114 
grades,  and  in  the  classification  prepared  by  the  Federal  Trade  Com- 
mission for  the  War  Industries  Board  and  revised  in  cooperation  with 


REPORT  ON  WOOLEN   RAG  TRADE. 


19 


it,  there  appear  about  570  grades.  To  one  unfamiliar  with  the  trade 
it  is  almost  inconceivable  that  there  should  be  so  many  grades  of 
woolen  materials  commonly  dealt  in  as  is  actually  the  case.  Not 
only  are  there  a  large  number  of  grades  but  many  of  the  gi-ades  have 
two  or  more  designations.  The  result  of  the  absence  of  any  standard 
system  of  grades  and  nomenclature  is  that  many  dealers  do  not  recog- 
nize material  of  the  same  grade  under  its  various  names,  and  that 
the  same  name  is  confusedly  applied  to  two  or  more  grades. 

IndustrM  organizatwn  of  woolen-rag  trade.-~When  classified  along 
broad  lines  the  various  kinds  of  dealers  can  be  described  roughly  as— 

(1)  The  "collector"  or  "peddler",   who  gathers  the  raw  material 
of  the  trade. 

(2)  The  "sorter",  who  is  frequently  also  a  junkman,  and  who  sorts 
the  material  into  primary  classifications. 

(3)  The  "grader",  who  subdivides  the  primary  classifications  more 
finely  than  the  sorter. 

But  the  woolen-rag  trade  is  one  where  the  different  types  of  oper- 
ators or  dealers  are  not  clearly  defined  at  any  stage  of  the  handling 
which  woolen  rags  (including  under  this  term  both  used  rags  and 
clips)  go  through  in  the  course  of  being  collected  and  prepared  for 
manufacture  into  shoddy.    Many  of  those  in  the  business  perform 
two  or  more  functions  with  respect  to  the  many  different  materials 
which  they  handle,  while  there  are  at  the  same  time  also  in  the  busi- 
ness many  who  handle  but  a  limited  or  special  class  of  material  and 
may   perform    only   one,    or,  at  most,  two  functions.     The   steps 
through  which  both  used  and  unused  materials  go  in  the  logical  course 
of  their  handling  are  practically  the  same.     The  details  of  handling, 
however,   differ  because  of  the  innate  character  of  the  material. 
"Used  rags"  are  composed  of  worn,  faded,  dirty  materials  and  come 
frequently  in  large  pieces.    "Clips"  consist  prunarily  of  small  trim- 
mings, edges,  scraps  of  material-^the  residue  of  the  cutting-table 
operations— are  fresh  and  comparatively  clean,  and  by  reason  of  their 
unworn  condition  and  the  brightness  of  their  colors  constitute  a  com- 
modity which  it  is  economically  worth  while  to  subject  to  more  care- 
ful grading  than  used  rags.     From  the  time  that  a  rag,  whether  used 
rag  or  clip,  is  collected  to  the  time  when  it  is  manufactured  into 
shoddy  it  passes  generally  through  four  stages,  each  of  which  may 
have  been  reached  through  the  activities  of  a  dealer  engaged  solely 
in  giving  rags  that  particular  treatment,  or  it  may  be  that  one  dealer 
may  have  performed  at  his  plant  two  or  all  of  the  three  handlings 
occurring  after  its  collection.    In  order  that  this  may  be  understood 
readily,  the  handling  of  used  rags  and  clips  will  each  be  traced  briefly. 

The  first  stage  through  which  the  used  rags  pass  is  that  of  col- 
lection by  men  popularly  known  as  the  "ragman",  the  "old  clothes 
man"  or  the  "cash-clothes  man."     In  the  trade  they  are  generaUy 


20 


REPORT  ON  WOOLEN  RAG  TRADE. 


known  as  the  peddler  or  collector.  It  is  more  true  of  the  collection 
of  woolen  rags  than  of  any  other  phase  of  their  handling  that  this  step 
is  handled  almost  entirely  by  dealers  who  perform  but  one  of  the 
several  functions  in  the  trade. 

The  second  stage  through  which  the  used  rags  pass  is  tliat  which 
is  furnished  by  the  junkman  who  purchases  from  the  peddler.  His 
task  is  to  divide  the  woolen  materials  which  he  accumulates  into  the 
two  principal  classifications,  ''Soft  woolens"  and  ''Rough  cloth, "  and 
the  minor  classes  of  "Carpets,"  "Felts,"  "Haircloths,"  "Linseys," 
and  "Seams."  The  "Soft  woolens"  are  generally  designated  as 
"Mixed  softs"  and  the  standard  grade  thereof  is  known  as  "Best 
mixed  softs" — in  so  far  as  there  can  be  said  to  be  any  common  stand- 
ard or  basis  used  by  the  trade  for  pricing  purposes.  "Rough  cloth" 
is  the  trade  name  for  what  might  be  called  "hard"  woolen  rags,  when 
in  the  condition  which  the  jimk  man  usually  handles  them,  that  is, 
the  condition  in  which  they  are  purchased  from  the  peddler.  "Rough 
cloth"  consists  of  old  clothes  worn  by  men  and  boys — coats,  vests, 
trousers,  overcoats,  caps — in  short,  all  outer  garments  mad<5  of  wool. 
When  these  garments  have  had  ripped  from  them  all  cotton  cloth 
padding,  lining,  and  buttons  with  which  they  are  made  up,  they 
are  designated  in  the  rag  trade  as  "Skirted  cloth."  It  so  happens 
in  the  collection  of  rags  that  many  pieces  of  woolen  fabric  will  be 
collected  which  have  no  other  material  attached.  Such  material  is 
slightly  more  valuable  than  the  "Rough  cloth."  Accordmgly  a 
peddler  may  collect  and  sort  out  those  pieces,  and  sell  them  sepa- 
rately. But  generally  speaking,  "sku-ted"  cloth  in  the  woolen  rag 
trade  is  obtained  from  "Rough  cloth"  by  the  ripping  and  tearing-ofF 
labor  of  the  junkman. 

The  third  stage  through  which  "Soft  woolens"  and  "Hard  clotlis" 
pass  consists  in  being  sorted  into  divisions  based  on  the  fabrics  of 
which  the  rags  are  made  or  on  their  colors,  or  both.  When  bales  of 
"Mixed  softs"  rags  have  been  re-sorted  or  graded  and  their  contents 
made  into  bales  of  straight  white  "Soft  woolens,"  or  "Red  knits"  or 
"Light  serge"  or  "Coarse  dark  merinos,"  etc.,  they  become  bales  of 
graded  rags. 

This  third  stage  is  handled  variously  by  dealers  known  aa  sorters 
or  graders.  The  junkman  when  dividing  the  woolen  rags  into  the 
primary  classifications  rarely  performs  the  tei^hnical  operation  known 
in  the  woolen  rag  trade  as  "sorting".  If,  however,  he  is  a  "big 
junkey,"  he  may  find  it  profitable  to  "skim"  his  rags  with  a  view  to 
selling  one  or  two  grades  separately  because  of  the  increased  price 
which  such  grades  command.  But  usually,  it  is  principally  the 
sorter  who  in  the  first  instance  divides  "Rough  cloth"  and  "Soft 
woolens"  into  grades.  It  is  to  be  noted  next  that  it  is  the  invariable 
result  that  such  first  sorting  does  not  produce  anything  like  a  pure 


REPORT  ON  WOOLEN  RAG  TRADE. 


21 


grade.  Where  the  demand,  therefore,  of  the  shoddy  producer  is  for 
a  bale  of  rags  containing  as  far  as  practicable  only  the  particular 
fabric,  and,  in  addition  perhaps,  the  particular  shade  of  that  fabric 
which  he  desires  to  turn  into  shoddy,  a  regrading  of  many  bales  is 
required  to  fill  the  order.  This  last  function  is  generally  known 
strictly  as  "grading"  in  contradistinction  to  the  function  previously 
described  under  the  term  of  "sorting".  These  two  functions  are  per- 
formed in  some  cases  by  the  same  dealer  and  in  other  cases  by  dif- 
ferent dealers.  The  operation  of  sorting  is  one  which  is  handled 
with  greater  or  less  care  depending  upon  the  character  of  the  demand 
of  the  dealer's  usual  customers,  or  the  specific  requirements  of  a 
particular  order.  The  business  of  grading  is  a  more  carefully  han- 
dled one  than  that  of  sorting,  requiring  more  expert  labor  and  the 
results  produced  are  of  as  high  a  standard  as  the  individual  dealer 
desires  to  attain — or  maintain.  They  depend  necessarily  upon  tha 
grade  of  article  demanded  and  the  price  paid  for  it  by  the  purchaser. 
This  function  of  the  business  is  probably  the  most  valuable  from  an 
economic  standpoint.  It  can  be  said  correctly  that  it  rests  in  the 
hands  of  a  group  of  dealers  whose  business  can  be  regarded  as  the 
most  firmly  established  of  any  in  the  woolen-rag  trade  and  who  are 
regarded  as  the  most  reliable  element  in  the  market.  Particularly 
amongst  those  dealers  who  limit  their  business  solely  to  grading  and 
regrading  and  especially  those  dealing  in  clips  solely,  will  be  found 
the  leading  types  of  business  men  engaged  in  the  trade.  It  should 
be  added,  however,  that  the  mere  fact  that  a  woolen-rag  dealer  is  in 
this  class  does  not  signify  that  his  methods  of  doing  business  are 
necessarily  any  different,  or  any  more  reliable  than  those  of  the  other 
three  classes  of  dealers.  The  grader  of  old  or  new  rags,  or  both, 
where  he  is  a  large  dealer,  invariably  performs  also  the  functions  of 
the  sorter;  but  in  the  trade  he  is  classed  as  a  grader.  It  is  to  be  noted 
that  the  term  "packer"  is  also  currently  used  to  designate  this  class 
of  dealer.  In  so  far  as  it  may  be  regarded  as  subject  to  control  by 
any  one  class  of  dealers,  the  grader  rules  the  trade. 

The  industrial  organization  of  the  trade  presents  the  anomaly  of  a 
trade  which  has  associations  of  dealers  and  yet,  which  considered  as 
a  whole,  and  in  comparison  with  other  industries,  must  be  classed 
as  an  unorganized  trade.  For  while  there  are  two  organizations  of 
influence  in  existence  they  represent  only  a  limited,  though  commer- 
cially powerful,  class  of  dealers  in  the  woolen-rag  trade.  This  is  a 
natural  situation,  readily  enough  understood  when  the  general  make- 
up of  the  trade  is  considered.  The  great  number  of  collectors  and 
of  junkmen,  both  large  and  small,  are  all  of  them  dealers  in  woolen 
rags,  but  the  dealings  of  each  are  so  small  and  their  distribution 
throughout  the  country  so  wide,  that  it  would  be  almost  a  physical 
impossibility  to  organize  and  control  them.     Then  there  is  the  large 


22 


KEPORT  ON  WOOLEN  RAG  TRADE. 


iiitormodiate  class  of  the  sorters  of  both  new  rags  (clips)  and  old 
rags,  whose  business  is  of  such  small  size,  of  so  shifting  and  uncertahi 
a  character,  and  so  widely  distributed,  as  to  make  them  difficult  to 
organize.  The  sorter  is  virtually  the  connecting  link  between  the 
original  producer  of  the  woolen  rag  (i.  e.,  the  collector  or  junkman) 
and  the  ultimate  producer — the  grader — ^who  is  the  head  and  back- 
bone of  the  trade.  It  is  among  the  graders  that  the  two  associa- 
tions exist.  And  while  not  having,  nor  exercising,  control  of  the 
industr}'  as  a  whole,  they  do  exercise  some  leadership. 

There  are  two  well  known  associations:  the  National  Association  of 
Waste  Material  Dealers  which  has  special  sections  composed  of  wool- 
en rag,  wool  waste,  and  shoddy  dealers,  with  headquarters  in  Boston, 
Mass.,  and  the  Wool  Stock  Graders'  Association,  an  organization 
developed  after  the  United  States  went  into  the  war.  Both  of  these 
organizations  had  war  service  committees,  composed  exclusively  of 
rag  dealers,  and  comprised  the  main  nucleus  in  cooperation  with 
which  the  Government  took  up  war  matters  pertaining  to  this  trade. 
These  two  organizations  undertook  also  to  keep  their  members  ad- 
vised of  developments  vitally  affecting  the  trade;  and  from  time  to 
time  they  also  presented  to  Government  representatives  recommen- 
dations of  measures  which  they  thought  should  be  put  into  effect. 
At  the  same  time,  groups  independent  of  these  associations  formed 
themselves  at  various  times,  temporarily,  with  a  view  to  taking  up 
trade  matters,  with  respect  to  which,  in  their  opinion,  special  action 
was  called  for. 

3.  Status  of  price  fixing  at  time  of  Commission's  investigation. 

In  the  summer  of  1917  an  informal  agreement  was  entered  into 
between  a  substantial  number  of  dealers,  mostly  graders,  which 
operated  by  means  of  voluntary  regulations  to  restrict  prices  of  old 
rags.  These  regulations  were  accepted  and  lived  up  to  by  the  trade 
in  general  for  a  number  of  months.  Toward  the  end  of  1917,  how- 
ever, they  began  to  be  disregarded  by  the  dealers  in  mixed  rags  who 
began  to  refuse  to  sell  the  basic  grades — ''Rough  cloth"  and  'Mixed 
softs" — at  the  prices  which  had  been  fixed  by  agreement.  The 
result  was,  that  the  graders  could  not  contiime  to  work  up  the  rags 
and  dispose  of  them  at  the  prices  fixed  for  graded  rags  with  the 
estimated  profit  to  the  graders.  In  consequence  this  voluntary 
attempt  to  regulate  the  trade  was  abandoned  early  in  1918.  For 
some  months  thereafter  prices  were  wholly  inicurbed  and  many  grave 
trade  abuses  flourished  unchecked. 

A  brief  reference  has  already  been  made  to  the  serious  situation 
which  this  condition  of  affairs  in  the  woolen-rag  trade  was  causing 
on  account  of  the  scarcity  of  new  wool  available  for  military  as  well 
as  civilian  clothing.     It  is  now  desirable  to  go  further  into  detail,  in 


REPORT  ON  WOOLEN  RAG  TRADE. 


23 


order  to  explain  fully  the  activities  of  the  War  Industries  Board,  in 
its  price  regulation  of  the  trade. 

Both  old  woolen  rags  and  clips  showed  violent  rises  in  price  in  tlie 
one  month  culminating  around  July  10,  1918.  The  leading  grade  of 
soft  woolens,  ''Mixed  softs,"  had  gone  up  in  price  from  18  to  2'2 
cents — an  increase  of  22  per  cent.  I'nsorted  ''hard"  woolens, '  Rough 
cloth,"  had  advanced  in  price  from  about  7\  to  91  cents — about  30 
per  cent.  The  graded  stocks  of  old  rags  hi  this  period  of  a  few 
weeks  showed  advances  varying  from  10  to  30  per  cent,  bringing 
them  to  top  prices  which  had  never  been  reached  before. 

With  respect  to  new  rags  the  situation  was  even  more  acute. 
The  leading  class  of  ungraded  new  clips,  "Fine  merchant  tailor" 
had  gone  up  from  the  neighborhood  of  28  cents  to  a  quoted  range 
of  34  to  36  cents  with  published  rumors  of  sales  at  40  cents. 
The  leading  graded  stock,  "Blue  worsted"  had  risen  in  price  from 
about  40,  and  45  cents,  to  60  cents.  Khaki  clips  were  largely 
owned  by  the  Government  and  thus  taken  out  of  the  rag  market. 
But  there  were  some  grades  coming  into  the  market  from  manufac- 
turers of  officers'  uniforms,  and  sales  of  the  best  grade  khaki  worsted 
were  reported  as  made  at  80  cents  and  more  per  pound. 

The  case  of  khaki  worsted  furnishes,  no  doubt,  the  best  illustra- 
tion of  what  was  possible  in  the  way  of  unprecedented  high  prices  in 
woolen  rags.  Since  the  outbreak  of  the  war  khaki  clips  had  been  in 
unusual  demand  for  manufacture  into  khaki  shoddy.  For  some 
months,  however,  prices  of  "Blue  worsted,"  'Black  worsted,"  and 
"Blue  serges,"  and  "Black  serges,"  the  leading  grades  for  civilian 
consumption,  had  been  keeping  pace  with  the  advance  of  khaki 
worsted.  Within  the  year  each  had  risen  in  the  neighborhood  of 
100  per  cent,  of  which  approximately  50  per  cent  took  place  within 
the  60  days  prior  to  July  10. 

Details  of  the  situation  at  this  time  are  to  be  found  in  the  columns 
of  the  Textile  World  Journal,  the  Waste  Trade  Journal  and  the 
Commercial  Bulletin  (Boston). 

Because  of  the  events  which  had  led  up  to  the  taking  over  from 
private  control  of  the  Base  Sorting  Plant  by  the  Quartermaster  Corps 
of  the  United  States  Army,  and  the  extreme  demoralization  and 
distrust  prevailing  in  the  rag  trade  at  the  time,  the  War  Industries 
Board,  following  some  informal  conferences  with  leading  dealers, 
took  preliminary  action  in  regulating  prices  on  July  12,  1918.  This 
action  was  in  the  form  of  an  announcement  signed  by  A.  L.  Gifford, 
Woolen  Rag  and  Fiber  Administrator,  statmg  that  in  accordance 
with  the  authority  given  him  by  the  War  Industries  Board,  it  was 
his  intention  "  to  fix  and  enforce  maximum  prices  on  rags  entering 
into  the  manufacture  of  woolen  fabrics. '*  He  stated  that  announce- 
ment of  the  maximum  prices  would  be  delayed,  and  directed  that 


24 


KEPORT  ON  WOOLEN  RAG  TRADE. 


"until  further  notice  no  dealer  make  any  sales  of  rags  at  prices  in 
excess  of  those  quoted  in  the  last  issue  of  the  recognized  waste  trade 
publications  previous  to  July  8,  1918/^  He  also  notified  each  rag 
grader  and  producer  (or  retailer)  of  rags  to  at  once  mail  him  a  record 
of  all  sales  during  the  week  ending  at  noon,  vSaturday,  July  13,  1918. 
Such  statement  had  to  include  the  names  of  the  purchasers,  the 
quantity  of  each  grade,  and  the  price  at  which  each  was  sold.  The 
full  text  of  the  announcement  will  be  found  in  the  Appendix  (Ex- 
hibit V). 

The  names  of  the  ^'recognized  waste-trade' publications"  were  not 
stated,  and  there  was  some  uncertainty  in  the  trade  as  to  the  exact 
maximum  prices  which  were  thus  specifically  established.  Never- 
theless, the  action  amounted  to  a  temporary  ' 'pegging"  of  prices, 
within  certain  fairly  well  recognized  limits. 

On  August  19,  1918,  the  Price-fixing  Committee  of  the  War  Indus- 
tries Board  fixed  prices  on  a  listed  nimiber  of  grades  of  old  woolen 
rags.  The  text  of  the  announcement  appears  in  the  Appendix 
(Exhibit  VI).  On  August  21,  1918,  the  Price-fixing  Committee  took 
similar  action  with  respect  to  new  woolen  clips  (Exhibit  VII) ,  and  on 
August  22,  1918,  on  a  list  of  shoddies  made  from  grades  of  woolen  rags 
specified  (Exhibit  VIII) .  Each  of  these  sets  of  prices  was  made 
effective  until  October  1,  1918,  and  thereafter  ''pending  the  compila- 
tion of  data  which  is  to  be  furnished  by  the  Federal  Tradt*  Commis- 
sion. "  It  should  be  noted  in  connection  with  the  prices  fixed  on  new 
materials  that  the  announcement  stated  that  they  were  "based  on 
high  standard  of  grading  and  should  not  be  paid  for  inferior  packing.' ' 

On  the  day  following  the  publication  of  the  prices  fixed  on  old 
rags,  the  Rag  Administrator  annoimced  that  on  all  grades  of  old 
woolen  rags  not  contained  in  the  schedule,  the  temporary  prices  as  of 
July  8  (fixed  in  his  announcement  of  July  13)  must  be  regarded  as 
constituting  maximum  prices.  It  should  be  specially  noted  that  no 
such  annoimcement  was  made  with  reference  to  the  prices  promul- 
gated on  new  rags  and  shoddies  on  August  21  and  22.  Subsequently, 
the  Woolen  Rag  Administrator  construed  all  three  promulgations  of 
regulations  and  prices  to  preclude  dealers  in  the  trade  from  carrying 
on  transactions  in  any  of  the  commodities  not  listed  among  those 
on  which  maximum  prices  had  been  fixed. 

II.     THE    CHARACTER    AND    SCOPE    OF    THE     COMMISSION'S 

INVESTIGATION. 

1.  Necessary  lines  of  investigation. 

At  various  conferences  held  between  the  Commission  and  the  War 
Industries  Board,  following  the  request  for  an  investigation  of  the 
woolen-rag  situation,  it  was  determined  that  the  fundamental  infor- 
mation to  be  sought  was  the  extent  to  which  the  very  marked  rise  in 


REPORT  ON   WOOLEN   RAG  TRADE. 


25 


prices  during  the  preceding  few  months  was  justified,  if  at  all,  by 
basic  conditions,  and  to  what  extent  it  was  unjustified  and  might  be 
checked  artificially  without  injustice  to  the  trade,  and  yet  allow  to 
dealers  profits  sufficient  to  stimulate  maximum  production. 

Since  the  woolen-rag  trade  consists  in  the  grading,  regrading  and 
subgrading  of  used  rags,  clippings  and  headings,  with  a  view  to  meet- 
ing the  requirements  of  the  shoddy  manufacturer,  it  was  also  necessary 
to  obtain  sufficient  information  on  the  character  and  needs  of  the 
shoddy  industry  to  enable  the  War  Industries  Board  to  deal  with  the 
various  problems  presented. 

Adequate  consideration  of  the  general  problem  involved  some 
study  of  the  history  of  the  industry  as  well  as  a  detailed  examination 
of  its  present  operation;  of  the  character,  nature  and  quantity  of  its 
raw  material;  of  the  characteristics  of  the  dealers,  as  well  as  of  the 
class  of  labor  engaged  in  carrying  on  the  industry;  and  of  those 
methods  and  customs  of  the  trade  which  fundamentally  affect  its 
conduct  and  influence  prices. 

It  was  apparent  at  the  commencement  of  the  work  that  some  ade- 
quate determination  of  what  were  the  grades  which  went  to  make  up 
the  commodities  in  which  the  industry  dealt,  and  a  standardization 
of  their  nomenclature,  constituted  a  fundamental  prerequisite  to  the 
making  of  recommendations  which  could  be  used  as  a  basis  for  uni- 
form regulation. 

Accordingly,  a  complete  survey  was  made  of  all  grades  of  materi- 
als in  current  use,  and  the  extent  to  which  each  was  dealt  in.  At- 
tention was  also  given  to  the  determination  of  a  definite  uniform 
nomenclature  which  should  be  established  for  use  in  the  regulation 
of  the  industry. 

The  lines  which  the  investigation  followed  after  the  requisite  pre- 
liminary work  on  classification  and  standardization  consisted  chiefly 
in  procuring  actual  figures  directly  from  the  books  of  dealers  in  the 
industry  on  the  actual  prices  at  which  the  leading  commodities  were 
originally  acquired  by  the  dealer;  how  many  times  they  changed 
hands,  and  with  what  variation  in  price,  prior  to  reaching  the  ulti- 
mate consumer ;  the  prices  at  which  they  were  finally  sold ;  and  the  per- 
centages of  profit  made  by  the  dealers  investigated. 

2.  Character  of  records. 

A  general  survey  was  first  made  of  the  various  classes  of  dealers 
with  a  view  to  ascertaining  what  information  was  procurable  from 
the  records  kept  by  them.  It  was  found  that  the  condition  of  the 
records  of  dealers  varied  from  no  books  at  all  (paper-slip  records  of 
daily  transactions  being  made,  which  were  lost  or  torn  up)  to  com- 
plete sets  of  books  such  as  are  kept  by  first-class  mercantile  or  manu- 
facturing concerns.     Only  a  small  percentage  of  dealers  of  the  total 


26 


REPORT  ON   WOOLEN   RAG  TRADE. 


who  were  visited  were  found  to  have  kept  records  sufficiently  ac- 
curate and  intelligible  for  use  in  the  investigation.  It  should  be  borne 
in  mind  that  this  statement  refers  to  the  trade  as  a  whole,  in  which 
are  included  the  small  peddler  or  collector,  the  junkman,  the  sorter, 
and  the  grader.  In  general,  no  records  were  available  for  the  first  two 
classes.  The  records  of  the  last  two  classes  were  found  to  be  in  some 
instances  very  good  and  in  others  very  bad.  If  the  business  done 
had  been  actually  recorded  it  was  easily  i>ossible  to  obtain  the  in- 
formation desired,  even  though  the  books  might  not,  from  an  account- 
ing standpoint,  have  been  well  kept.  In  most  instances,  however, 
a  full  set  of  books  was  not  kept.  The  result  was,  that  only  a  small 
proportion  of  the  dealers,  primarily  those  conducting  the  larger  busi- 
nesses in  the  industry,  particularly  in  the  class  of  graders,  were  found 
to  possess  adequate  records.  A  further  examination,  however,  showed 
that  through  the  investigation  of  a  selecte<l  number  of  concerns  in 
various  sections  of  the  country  accurate  data  could  be  obtained  with 
respect  to  a  large  percentage  of  the  total  business  transacted  in  the 
industrv.  Furthermore,  there  were  instances  where  the  records  of 
smaller  dealers  and  of  dealers  specializing  along  certain  lines  furnished 
information  accurately  typical  of  the  general  situation  for  such  classes 
of  dealers. 

3.  Nnmber  and  nature  of  firms  examined. 

By  reason  of  the  fact  tJiat  by  far  the  greater  portion  of  tlu^  business 
is  done  east  of  the  Mississippi  River,  and,  approximately,  north  of  the 
Ohio  River  and  of  a  line  drawn  therefrom  to  the  Atlantic  soacoast,  it 
was  possible  to  obtain  access  to  the  available  records  without  having 
to  cover  too  wide  a  territory.  The  records  of  15  dealers,  all  ot  whom 
were  engaged  not  only  in  the  final  grading  of  material  before  its  sale  to 
shoddy  manufacturers,  but  also  in  prior  parts  of  the  business  as  well, 
were  selected  for  examination.  These  15  firms  are  located  in  various 
sections  of  the  country  and  are  representative  of  medium-sized  dealers 
as  well  as  large  dealers,  and  represent  different  kinds  of  business 
and  different  kinds  of  dealers.  The  books  of  these  concerns  were 
examined  by  accountants.  They  investigated  concerns  located  in 
Boston,  New  York,  Baltimore,  Cleveland,  and  Chicago.  Their  main 
task  consisted  in  procuring  information  from  which  the  profits  de- 
rived from  the  business  could  be  ascertained.  Their  work  was  carried 
on  in  such  a  manner  as  to  obtain  figures  which  permitted  valid 
comparisons  to  be  made  between  the  business  of  different  dealers. 

In  addition  to  the  foregoing  dealers,  some  25  concerns  were  visited 
in  the  city  of  New  York.  They  included  dealers  conducting  a  small 
business,  as  well  as  dealers  specializing  in  only  a  very  limited  section 
of  the  business.  The  books  of  these  concerns  were  examined  for  the 
purpose  of  procuring  data  on  the  actual  prices  of  commodities  which 


- 


REPORT  OX   WOOLEN  RAG  TRADE. 


27 


they  bought  and  sold  during  the  18  months  prior  to  the  time  of 
the  investigation.  Similar  price  data  was  obtained  by  the  Commis- 
sion's agents  at  the  majority  of  the  concerns  visited  by  them.  This 
price  information,  presented  in  this  report,  comes  from  a  variety  of 
concerns,  numbering  in  all  40  dealers.  They  can  be  considered  as 
adequately  representative  of  the  industiy  as  a  whole. 

III.    INFORMATION   COLLECTED   BY   THE   COMMISSION. 

1.  Price  information  obtained. 

Use  was  made  of  prices  from  three  sources:  Pubhshed  prices, 
prices  of  actual  sales  reported  to  the  War  Industries  Board,  and 
prices  of  actual  sales  collected  by  the  Commission's  agents. 

Puhlishsd  prices. — The  information  on  published  prices  of  woolen 
rags  is  given  for  two  periods.  The  first  covers  the  years  1904  to  1911, 
inclusive,  a  representative  period  prior  to  the  European  war.  The 
second  covered  the  period  from  January,  1913,  through  March  1919 
and  presents  the  price  situation  immediately  before  the  outbreak  of 
the  war  and  the  effect  on  prices  produced  by  the  war. 

The  price  information  used  for  the  first  period  (1904-1911)  origi- 
nally was  published  in  the  American  Wool  and  Cotton  Reporter. 
The  table  showing  prices  for  21  grades  appearing  in  the  Appendix 
(Exhibit  IX)  is  reprinted  from  page  80  of  the  report  of  the  Tariff 
Board  on  Schedule  K  (1912).  Prices  shown  for  two  principal 
classifications  of  old  (used)  rags  and  one  of  clips  are  as  follows: 


Table  1.— 


Prices  of ''Rough  cloth''  and  ''Soft  woolen''  used  rags  and  "Fine  merchant 

tailor"  clips,  1904-1911. 

[Cents  per  pound.] 


Year. 


1904 
1905 
1906 
1907 
1908 
1909 
1910 
1911 


Skirted  cloth 
mixed. 


Soft  woolens 
(No.  1). 


Fine  merchant 
tailors  (all  c<rfo(rs). 


High. 


6 
6 
6 
5 

^ 
^ 


Low. 


High. 


^ 

.■>    I 
4 

4     I 

2i| 


lOi 
11" 

8 
65 

^ 


Ix)w. 


High. 


Low. 


8f 

9 

8 

5 

5 

5 

4 


10 
U 
12 
12 
12 
11^ 

81 

8 


7 

8 

9 

11 

10 

7 

*• 
I 

5 


The  price  information  used  for  the  second  period  (January,  1913- 
December,  1918)  was  compiled  from  trade  paper  sources  by  the 
Price  Section,  Division  of  Planning  and  Statistics,  of  the  War  In- 
dustries Board,  as  far  as  August,  1918,  and  brought  down  through 
March,  1919,  by  the  Federal  Trade  Commission.  Quarterly  and  yearly 
prices  shown  for  the  two  primary  classifications  of  old  (used)  rags,  and 


28 


REPOKT  ON  WOOLEN  RAG  TRADE. 


one  of  clips,  together  with  the  corresponding  index  nnmber  or 
relative  price,  based  on  the  average  monthly  price  for  July  1,  1913- 
June  30,  1914,  are  as  follows: 

Table  2.— Prices  of^^Rough  cloth*'  and  ^^Soft.  wooUri'*  mgs  and  ^'Fine  merchant  tuilor*^ 

clips,  January,  191.i~March.  1919. 


January- March . 

April-Juno 

Juiy-Septomber — 
Oetober-Decem  ber . 

Year 


1913. 


January- March 

April-June 

July-September — 
October-December . 

Year 


1914. 


January- March . 

April- Jime 

July-September — 
October-December. 

Year 


1915. 


January-March 

April-Juno 

July- September 

October-December . 

Year 


1916. 


Rough  cloth. 


Actual       Index 

prices  No.  (base 

per  =1.62 

pound.      cents). 


Cents. 
1.79 
1. 
1. 
1. 


.60 
.50 
.58 


110 
99 
93 
98 


1.62 


100 


1.70 
1.70 
1.56 
2.63 


105 

105 

96 

162 


1.90 


117 


4.00 
2.92 
4.67 
6.14 


242 
180 
288 
379 


Soft  woolens 
(best  mixed). 


Actual   '    Index 
prices     No.  (base 


Fine  merchant 
tailor  clip;*. 


per 
pound. 


Ctnta. 
6.65 
.5.54 
5.14 
5.31 


5.66 


5.54 
5.38 
4.94 
6.54 


=  5.34 
cents). 


125 

104 

96 

99 


106 


5.60 


4.43 


273 


8.86 
6.11 
5.09 
6.13 


548 
377 
314 
378 


8.67 

7.71 

10.21 

12. 17 


9.69 


16.21 
12.30 
11.42 
13.13 


6.55 


404 


January- March . 

April-Junc 

July-September 

October- December. 

Year 


1917 


5.09 
4.96 
5.38 
5.34 


13.26 


314 
306 
332 
330 


12.33 
12.67 
13.42 
13.71 


104 

101 

93 

122 


105 


162 
144 
191 
228 


181 


304 
230 
214 
246 


248 


231 
237 
251 
257 


January-March . 

April- June 

July-Septomlx>r — 
October-December. 


1918. 


Year. 


5.19 


5.46 
6.96 
8.75 
7.79 


7.24 


January- March . 


1919. 


6.75 


320 


13.03 


244 


Actual  I    Index 

prices  j No.  (base 

per  « 7.69 

pound.  cents). 


CtnlM. 
7.25 

7.88 
6.80 
7.83 


94 
102 

88 
102 


,44 


97 


7.83 
8.29 
7.75 
9.00 


102 

108 
101 
107 


8.22 


107 


11.. 50 
12.  50 
14.08 
17.00 


150 
163 
183 
221 


13. 


179 


35.00 
21.00 
19.50 
20. 67 


325 
273 
254 
269 


21.54 


21.33 
20.17 
31.50 
32.83 

21.46 


280 


277 
262 
280 
297 


279 


337 
430 
.540 
480 


14.00 
17.42 
21.50 
19.62 


446 


18.14 


416 


16.75 


262 
326 
403 
367 


337 


313 


'i,').  67 
28. 33 
35. 83 
36.33 


334 
368 
465 
471 


31.54 


410 


2!».  67 


387 


The  prices  during  1904-1918,  shown  in  the  two  foregoing  tables 
indicate  that  the  general  trend  for  old  (used)  rags  was  rising  in 
1904  and  reached  a  high  level  in  1905  and  1906.  A  fall  then  set  in 
which  continued  through  1911.  Prices  for  1912  were  not  available, 
but  in  1913  the  level  was  below  that  of  1911.  Prices  then  began 
to  rise,  the  highest  point  reached  being  in  1918.  The  price  move- 
ments of  cHps  was  in  general  similar,  except  that  the  first  rise  cul- 


4> 


j^ 


REPORT  ON   WOOLEN  RAG  TRADE. 


29 


minated  in  1907,  a  year  later  than  the  case  of  old  (used)  rags,  and 
there  was  no  marked  decline  until  1909.  Detailed  monthly,  quar- 
terly, and  yearly  prices  for  7  grades  of  used  rags  and  6  of  chps  will 
be  found  in  the  Appendix  (Exhibit  X) . 

Prices  re/ported  to  the  War  Industries  Board. — The  prices  obtained 
by  the  War  Industries  Board  were  reported  to  it  by  dealers  on  signed 
(and  sometimes  sworn)  weekly  reports,  which  set  forth  their  transac- 
tions during  the  specified  periods. 

From  its  inception  the  Woolen  Rag  Branch  of  the  Woolen  Section 
of  the  War  Industries  Board  required  weekly  reports  to  be  made 
it  by  dealers  in  the  trade,  showing  the  quantities  traded  in  and  the 
prices  of  all  sales  and  purchases  made  by  all  dealers,  as  well  as  their 
stocks  on  hand.  .  In  cooperation  with  the  Federal  Trade  Commission's 
force,  these  data  were  transcribed,  examined,  subjected  to  verifica- 
tion and  special  explanation,  and  then  coordinated  and  analyzed 
for  the  purpose  of  determining  high  and  low  prices  and  also  the  general 
prevailing  price  of  each  of  the  commodities  inquired  into. 

A  statement  which  summarizes  for  96  grades  the  price  informa- 
tion derived  from  these  reports,  for  the  months  of  July,  August, 
and  September,  1918,  appears  in  the  Appendix  (Exhibit  XI).  The 
purpose  of  this  work  was  to  furnish  the  information  necessary  lor 
a  proposed  revision  of  the  then  existing  maximum  prices.  This 
statement  was  drawn  up  to  show  the  high  and  low  price  of  each  of 
the  grades  named  in  the  maximum  price  lists;  also,  the  ''generally 
prevailing  price''  during  the  two  months  or  so  covered  by  the  report. 
For  the  securing  of  the  generally  prevailing  price  it  was  necessary 
to  study  special  transcripts  made  for  this  purpose  of  reported  prices, 
as  well  as  the  number  of  transactions  and  the  pounds  of  rags  covered 
by  them.  The  statement  also  shows  the  maximum  prices  in  effect, 
and  a  direct  comparison  between  them  and  the  reported  prices. 

Prices  collected  directly  hy  the  Commission. — Price  information  was 
taken  directly  from  the  books  of  about  40  dealers  by  accountants 
and  other  representatives  of  the  Commission  covering  transactions 
for  a  period  of  10  days  subsequent  to  each  of  six  specific  dates. 
These  were  January  1  and  July  1,  in  1917,  and  January  1,  April  1, 
July  1,  and  October  1,  in  1918.  Prices  at  these  dates  were  taken  for 
30  grades  of  old  (used)  rags  and  16  grades  of  clips.  The  prices  were 
taken  directly  from  the  sales  and  purchase  books,  together  with  the 
quantity  involved  in  each  transaction.  A  statement  summarizing 
the  prices  obtained  in  this  manner  will  be  found  in  the  Appendix 
(Exhibit  XII). 

The  following  table  presents  in  comparative  form  the  prices  for 
11  grades  from  the  three  sources,  i.  e.,  published  prices,  prices  le- 
ported  by  dealers  to  the  War  Industries  Board,  and  prices  collected 
from  dealers'  records  by  the  Federal  Trade  Commission  agents.     The 


30 


REPORT  ON    WOOLEN   RAG  TRADE. 


prices  from  the  last  two  sources  are  included  under  the  caption 
"Prices  collected  by  the  Federal  Trade  Commission,"  with  a  ft»ot- 
note  to  indicate  those  reported  to  the  War  Industries  Board. 

Table  Z.— Comparison  o/prwesfrom  (liferent  sources,  1917  and  191  f<: 

[All  prices  shown  in  cents  per  pound.] 


Date. 


Rough  cloth 
rags. 


Prices 
from 
pub- 
lished 
sources. 


January,  1917 

July, 1917 

January,  1918 

April,  1918 

July,1918 

October,  1918 

July-September,  1918 


5.63 
3,38 
5.50 

5.88 
8.50 
8.75 

8.75 


Prices 
col- 
lected 

by 
Federal 
Trade 
Com- 
mission. 


5.25 
5.00 

5.  25 
5.88 
8.00 

8.88 


Light  cloth 
rags. 


Prices 
from 
pub- 
lished 
sources. 


9.00 

9.50 

9.50 

8.50 

13.12 

13.12 

13.12 


Prices 

lecttd   '   V"«es 


Light  worsted 
rags. 


Skirted  delaines 
rags. 


by 
Federal 
Trade 
Com- 
mission. 


5.00 

5. 75 

9.50 

9.50 

11.13 

13.50 

1  12. 75 


from 
pub- 
lished 
sources. 


13. 25 
15. 50 
15.00 
16.00 
22.50 
22.50 
22.50 


Prices 
col- 
lected 

Federal 
Trade 
Com- 
mission. 


Prices 
from 
pub- 
lished 
sources. 


Prices 

col- 

le«?ted 

I      by 

Federal 

Trade 

\    Com- 

;  mission. 


11.00 
11.75 
14.38 
17.25  i 
19. 50  I 
22.25 
121.50 


1.  25 
1,06 
1.13 
4.13 
4.t5 

e.i>o 

5.50 


4.00 
3.38 
3.00 
4.00. 
.5.00 
6.00 

lo.oa 


Date. 


January,  1917 

July, 1917 

January,  1918 

April,  1918 

July, 1918 

October,  1918 

July-September,  1918 


Mixed  soft 
rags. 


Blue  serge 
rags. 


Fine  merchant 
tailor  clips. 


Blafk  worsted 
clips. 


Prices 
from 
pub- 
lished 
sources. 


13. 25 
13.25 
14.00 
15.75 
21.00 
21.50 
21.. 50 


Prices 
col- 
lected 

by 
Federal 
Trade 
Com- 
mission. 


12.00 
12.25 
12.50 
14.88 
19. 75 
22.75 
20.50 


Prices 
from 
pub- 
lished 
sources. 


18.50 
16. 50 
16.50 
16.50 
21.50 
21.50 
21.50 


Prices 

col- 
lected 

by 
Federal 
Trade 
Com- 
mission. 


16.25 
13.25 
16.00 
17.25 
20.63 
21.63 
1  20. 75 


Prices 
from 
pub- 
lished 
sources. 


23.50 
21. 50 
25.00 
26.00 
33.00 
38.00 
35.83 


Prices 
col- 
lected 

by 
Federal 
Trade 
Com- 
mission. 


Prices 
from 

pub 

lishfii 
sources. 


19.00 
21.00 
26.50 
27.50 
38. 50 
37.00 
139.00 


3A.  m 

33.  75 
4;<.75 
43. 75 
.52.  00 
65. 00 
58.17 


Prices 
col- 
lected 

Fe<lerali 
Trade 
Com- 

miasion^ 


37.50 
40.00 
42.50 
43. 50 

56.  oa 

61.50 
1.56.60 


Date. 


January,  1917 

July, 1917 

January,  1918 

April,  1918 

July, 1918 

October,  1918 

July-September,  1918 


Blue  worsted  clips.      Blue  serge  clips-.     '   White  serge  clips. 


Prices 
from 
pub- 
lished 
sources. 


34.50 
32.25 
42.50 
4L50 
56.50 
62.00 
59.83 


Prices 
collected 

Federal 
Trade 


Prices 

from 

pul»- 

li.shoxi 


Prices 
collected 

by 
Federal 

Trade 


Prices 
from 
pub- 
lished 


Commis-    sources.    Commis- 1  sources 


sion. 


36.00 
37.00 
44.00 
4L75 
.55. 25 
60.50 
1 .56. 50 


sion. 


33.50 
27.50 
36.50 
36.50 
48.00 
50.  00 
49.67 


27.50 
30.00 
39. 50 
4L00 
50.50 
49.75 
147.50 


29.  on 


46.50 
46.  50 
53.  50 
70.  OU 
60.17 


Prices 
collected 

by 
Federal 
Trade 
Commis- 
sion. 


Se.OQ 
42.50 
47. 50 
52.50 
63.50 
67.50 
1  57. 50 


1  Prices  reported  to  War  Industries  Board. 

It  will  be  seen  from  the  foregoing  comparison  that  almost  all  of 
the  prices  obtained  from  these  different  sources  are  in  substantial 
agreement.     Therefore,   the  series  of  price  statistics  derived  from 


\ 


REPORT  ON  WOOLEN   RAG  TRADE. 


31 


published  sources  can  be  accepted  as  showing,  with  reasonable  act 
curacy,  price  movements  throughout  the  period  covered  hj  them. 

Discussion  of  price  information. — The  course  of  prices  of  ''Rough 
cloth"  rags,  ''Light  cloth"  (one  of  the  principal  grades  obtained  in 


sorting  "Rough  cloth"),  "Mixed  softs,"  and  "Blue  serge"  (one  of  the 
principal  grades  obtained  in  sorting  "Mixed  softs")  is  shown  in 
graphic  form  on  charts  A  above  and  B  (on  p.  32).  Chart  A  shows  the 
actual  prices,  and  B  the  relative  prices. 


32 


REPORT  ON   WOOLEN   RAG   TRADE. 


4  1^        > 


Chart  A  shows  that,  as  far  as  price  levels  are  concerned,  '^  Rough 
cloth"  is  the  lowest-priced  grade  and  ''Blue  serge"  the  highest. 
Chart  B  shows,  however,  as  far  as  relative  advance  of  pricc^s  is  con- 
cerned, that  prices  of  "Rough  cloth"  have  advanced  far  out  of  pro- 


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Reiative  Prices  -OsedlVL 

Rougii  Clofil  Rags 
Li  gilt  do  til  Rags 
Mixed  Soft  Rags 
B/ueSerae  if  a  as 

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11 

portion  to  the  other  grades,  and  that  next  came  ''Light  clotli,"  which 
is  one  of  the  grades  derived  from  "Rough  cloth." 

Charts  A  and  B  bring  out  clearly  the  recovery  of  the  prices  on 
"  Rough  cloth"  rags,  and  to  a  less  degree  of  the  prices  on  "Mixed  soft" 


i' 


r 


I    i> 


REPORT  ON  WOOLEN  RAG  TRADE. 


33 


rags,  from  the  low  levels  reached  in  December,  1918,  and  January, 
1919,  the  months  immediately  following  the  Armistice.  A  large  part 
of  this  rise  during  February- April,  1919,  is  attributable  to  the  resump- 
tion of  exports  (see  p.  51).     It  will  be  noted  that  tlie  prices  of  "Blue 


>) 


serge"  rags  were  but  slightly  affected  and  those  of  "Light  cloth" 
rags  not  at  all. 

Charts  C  and  D  show  in  graphic  form  the  prices  of  "  Fine  merchant 
tailor"  clips  and  of  "Blue  serge"  clips  and  "Blue  worsted"  clips 
141957—20 3 


34 


REPORT  ON   WOOLEN  RAG  TRADE. 


(two  of  the  principal  grades  obtained  from  ''Fine  merchant  tailor'^ 
clips).  It  will  be  noted  by  chart  D  that  "Blue  serge''  clips  had  the 
greatest  relative  advance  in  prices,  and  that  ''Blue  worste<r'  clips, 
the  highest-priced  grade,  had  about  the  same  relative  advance  as 


'Fine  merchant  tailor''  clips.     It  should  be  noted  that  there  was'no 
recovery  m  the  prices  of  cHps  from  the  drop  following  the  Armistice 
the  course  of  prices  differing  materially  in  these  instances  from  those 
for  "  Rough  cloth  "  rags  and ' '  Mixed  soft ' '  rags  shown  on  Charts  A  and  B 


t 


REPORT  ON   WOOLEN  RAG  TRADE. 


35 


The  prices  of  used  rags  and  of  clips  are  limited  at  the  top  by  the 
current  price  of  new  wool.  While  certain  grades  of  shoddy  may  bo 
higher  priced  than  certain  grades  of  new  wool,  all  other  things  being 
equal,  shoddy  does  not  command  as  high  a  piice  as  new  wool.  From 
an  economic  standpoint,  it  is  not  the  equal  of  new  wool.  The  price 
at  which  the  shoddy  manufacturer  can  market  his  output  limits  the 
price  which  he  is  in  a  position  to  pay  for  the  rags  to  be  manufactured 
into  shoddy.  It  follows  that  the  top  prices  of  rags  are  absolutely 
limited  by  current  top  prices  on  the  shoddy  manufactured  from  the 
rags. 

On  the  other  hand,  there  is  a  bottom  price,  particularly  with 
respect  to  old  rags,  below  which  prices  can  not  go,  if  production  is  to 
continue.  The  woolen-rag  dealer,  as  distinguished  from  the  peddler 
who  collects  rags  in  the  first  place,  purchases  his  commodity  from  the 
dealer  in  "Mixed  country  rags. "  That  is  the  source  out  of  which  old 
woolen  rags  coine.  The  price  of  "Mixed  country  rags"  depends  in 
part  on  the  price  obtained  for  the  other  components  of  "Mixed 
country  rags"  other  than  woolen  materials.  The  two  commodities, 
"Eough  cloth"  and  "Soft  woolens"  (derived  from  "Mixed 
country  rags"),  in  themselves  constitute  the  basis  on  which  the 
woolen-rag  trade  is  built  up.  It  follows  that  the  prices  prevailing 
on  "Rough  cloth"  and  "Soft  woolens"  furnish  a  barrier  below 
which  the  woolen-rag  sorter  or  grader  can  not  go  and  still  operate  his 
business  at  a  profit.  Thus,  the  prices  of  these  two  basic  classifications 
of  old  rags  are  influenced  both  by  the  prices  of  "Mixed  country  rasrs" 
(from  which  they  are  derived)  and  also  by  the  prices  of  the  grades  into 
which  they  themselves  are  subdivided.  Any  but  a  slight  change 
in  the  prices  on  graded  rags  invariably  results  in  a  change  in  the 
prices  of  "  Rough  cloth  "  and  "  Soft  woolens. " 

With  respect  to  clips,  the  same  holds  true  with  the  exception  that 
the  bottom  barrier  is  more  elastic.  The  vendors  of  ungraded  clips 
are  the  clothing  house  manufacturers  and  merchant  tailors.  Until 
recent  years,  not  much  attention  was  paid  by  such  concerns  to  this 
by-product  as  a  regular  source  of  business  income.  In  many  instances 
the  money  obtained  was  allowed  to  be  the  perquisite  of  some  fore- 
man or  manager  and  was  never  turned  in  to  the  firm.  To-day, 
It  is  not  only  an  item  taken  into  consideration  as  a  part  of  the 
dealer's  regular  receipts  from  his  business,  but  in  a  large  number  of 
instances  the  value  of  the  clippings  is  taken  into  consideration  in 
figuring  the  price  of  making  garments.  The  basic  selling  price 
of  the  collector  must  of  course  be  one  which  would  permit  the  profit- 
able collection.  Intimately  bound  up  with  this  is  the  attitude  of 
the  vendor.  If  he  does  not  care  to  sell  his  clips  at  the  price  offered, 
he  may  seek  to  dispose  of  the  material  himself— even,  sometimes' 
first  partly  sorting  it  instead  of  selling  it  to  the  collector  who  calls 


r 


36 


REPORT  ON   WOOLEN   RAG   TRADE. 


to  purchase  it.  These  factors  place  a  limit  on  the  bottom  price  of 
clips.  The  factors  which  determine  the  rise  and  fall  in  the  prices  of 
clips  are  virtually  the  same  as  those  ah-eady  described  in  connection 
with  used  woolen  rags.  It  is  necessary,  however,  to  keep  in  mind 
the  fundamental  distinction  that  unused  fabrics  made  of  wool  will 
contain  more  wool  suitable  for  shoddy  purposes  than  the  same  fab- 
rics after  they  have  become  worn.  Therefore,  for  corresponding 
grade  the  clip  is  invariably  higher  in  price  than  the  used  rag.  The 
ratio  of  price  varies  with  the  diflFerent  fabrics.  The  difference  in 
price  is  less  when  the  fabric  contains  cotton,  silk,  etc.,  which  has  to 
be  removed  during  the  conversion  into  shoddy. 

The  following  table  shows  a  comparison  between  the  pri<ie  of  blue 
serge  used  rags  and  blue  serge  clips  over  a  period  of  years: 

Table   4.— Comparison  of  the  prices  of  ''Blue  serge''  rags  and  '' Bltie  aerae"  clivs 

1913-1918.  ' 


Period. 


January-Marcb 

April-June , 

July-September. . . , 
October- December 

Year 


1913 


Rags. 


Cents. 
5.67 
6.00 
6.00 
5.12 


5.70 


Clips. 


Cents. 

10.83 

10.75 

7.96 

9.83 


9.84 


Dififer- 
ential. 


Cents. 
5.16 
4.75 
1.96 
4.71 


4.14 


1914 


Rags. 


Cents. 
5.45 
6.00 
5.54 

7.78 


6.19 


Clips. 


Cents. 
9.08 
9.34 
9.71 

12.83 


10.34 


Differ- 
ential. 


Cents. 
3.63 
3.34 
4.17 
5.05 


4.05 


1915 


Rags. 


Cents. 
13.08 
12.67 
13.50 
15.50 


13.69 


Clips. 


Cents. 
20.17 
18.50 
21.17 
25.33 


31.29 


Differ- 
ential. 


Cents. 
7.09 
5.83 
7.67 
9.83 


7.60 


Period. 


January-March 

April-June 

July-September. . . 
October- December 

Year 


1916 


Rags. 


Cents. 
18.50 
15.33 
13.58 
16.00 


CUps. 


Cents. 
29.17 
23.17 
22.17 
34.50 


15.85  I    34.77 


Differ- 
ential. 


Cents. 

10.67 
7.84 
8.59 
8.50 


8.92 


1917 


Rags. 


CeiUs. 
16.83 
15.17 
15.50 
15.50 


15.75 


Clips. 


Cents. 
23.92 

25.17 
27.50 
31.67 


27.06 


Differ- 
ential. 


Cents. 

6.09 

10.00 

12.00 

16.17 


12.31 


1918 


Rags. 


Cents. 
16.33 
19.17 
21.50 
23.83 


20.21 


(Mips. 


Cents. 
36.60 
40.83 
49.67 
48.67 


43.92 


Differ- 
ential. 


Cents. 
20.17 
21.66 
28.17 
34.84 


23.71 


The  lowest  differential  shown  for  any  one  quarter  is  1.96  cents  in 
July-September,  1913,  and  the  greatest  difference  28.17  cents  in  July- 
September,  1918.  The  average  yearly  differential  increased  from 
4.14  cents  in  1913  and  4.05  cents  in  1914  to  23.71  cents  in  1918. 
In  1913,  the  average  rag  price  was  58  per  cent  of  the  clip  price,  in 
1914  it  was  60  per  cent,  in  1915  and  1916,  64  per  cent,  in  1917,  58 
per  cent,  and  in  1918  it  dropped  to  46  per  cent. 

From  the  foregoing  statistics  it  is  obvious  that  the  relation  be- 
tween the  prices  of  blue  serge  rags  and  blue  serge  clips  has  varied 
greatly  during  the  past  six  years. 


REPORT  ON  WOOLEN  RAG  TRADE. 


37 


2.  Costs  and  earnings  information  obtained. 

Costs  of  operation. — ^The  Commission  was  able  to  secure  financial 
costs  in  the  desired  comparable  shape,  covering  the  operations  of 
nine  firms  for  four  years,  and  of  three  additional  firms  for  three 
years.  The  dates  of  the  latest  closing  of  books  were  December  31, 
1917,  in  nine  instances,  and  March  31,  1918,  May  30,  1918,  and  June 
30,  1918,  respectively,  in  the  case  of  three  firms.  In  compiling  the 
composite  statements  herewith  presented,  no  attempt  has  been 
made  to  secure  exact  comparability  of  the  periods  grouped,  by  ad- 
justing or  prorating  through  some  theoretical  method,  the  slight 
differences,  but  in  each  case  where  the  periods  did  not  correspond 
with  the  calendar  years  they  have  been  treated  as  falling  in  the  cal- 
endar year  to  which  they  virtually  belonged. 

The  conditions  brought  about  by  the  Armistice  made  it  imneces- 
sary  for  the  Federal  Trade  Conm^ssion  to  examine  the  financial 
records  for  these  companies  for  1918.  Such  an  examination  would 
have  had  to  be  postponed  imtil  about  February,  1919,  since  until 
then  the  books  would  not  generally  have  been  ready  for  examina- 
tion, and  it  was  felt  that  the  necessity  for  such  information,  in  view 
of  the  existing  situation,  did  not  warrant  either  the  expense  to  the 
Government  or  the  inconvenience  to  the  firms  whose  records  were 
examined. 

The  combined  figures  for  the  principal  elements  in  the  cost  of 
operation  for  the  nine  firms  for  which /owr-y ear  records  were  obtain- 
able are  as  follows: 

Table  b.— Costs  of  operation  of  9  firms,  1914-1917. 


' 

1917 

1916 

1915 

1914 

Cost  of  raw  materials 

»13,444,920 

649,686 
188,361 
821,518 

$12,927,982 

485,001 
143  IHR 

$8,911,408 

329,054 
101    coo 

$4,667,464 

2-i;224 
109,010 
423,541 

Sorting  and  handling  of  materials: 

Labor , 

Expense 

Administration  and  selling  expense 

606,068            478,381 

Total 

15,104,485 

14,162,207 

9,840,665 

5,471,239 

The  proportion  which  each  of  these   items  forms   of  the  total 
expense  is  shown  in  the  following  table: 

Table  6. — Percentage  relation  of  cost  items  to  total  cost  of  operation  of  9  firms   1914- 

1917. 


Cost  of  raw  materials 

Sorting  and  handling  of  materials: 

Labor 

Expense 

Administration  and  selling  expense 

Total 


1917 


Per  cent. 
89.1 

4.3 
1.2 
5.4 


100.0 


1916 


1915 


1914 


Per  cent.    Per  cent.    Per  cent. 
91.3  90.6  ;  85.2 


3.4 
LO 
4.3 


100.0 


3.3 
1.2 
4.9 


5.0 
2.0 
7.8 


100.0 


100.0 


38 


REPORT  ON  WOOLEN  RAG   TRADE. 


Similar  combined  amounts  and  percentages  for  the  12  firms  (in- 
eluding  the  nme  just  mentioned)  for  which  three-ye^r  records  were 
obtamable  are  as  fpllows: 

T'^BLE  7. —Co*ts  of  operation  oj  1^  firms,  1915-1917.' 


Cost  of  raw  materials 

Sorting  and  handling  of  materials: 

Labor 

Expense .'......... 

Administration  and  selling  expense 

Total 


1917 

1916 

1915 

$15,400,503 

783,636 
228,429 
981, 448 

$15,161,002 

635,843 
172, 623 
752,406 

$10,167,425 

409,497 
135,957 
639,885 

17,384,016 

16,721,874 

11,252,764 

The  proportion  which  each  of  these  items  forms  of  the  total  expense 
IS  shown  in  the  following  table: 

Table  8.— Percentage  relation  of  cost  items-  to  total  cost  of  operation  of  12  firms,  1915- 


1917 

1910 

1915 

Cost  of  raw  materials 

Per  cent. 
88.6 

4.5 
1.3 
5.6 

Per  cent. 
90.7 

3.8 
1.0 
4.5 

Per  cent. 

Sorting  and  handling  of  materials:                               

Labor 

90.4 

Kxpenso 

Admimstrat ion  and  selling  expense! .............'. 

3.6 
L2 

Total 

4.8 

100.0 

100.0 

100.0 

The  average  proportions  for  the  respective  four-year  and  three- 
year  periods  are  as  follows: 


Cost  of  raw  materials 

Sorting  and  handling  of  materiais: 

Labor 

Expense .'..'..'.. 

Administration  and  selling  expense 

Total 


1914-1917,      1915-1917, 
9  firms,    i    12  firms. 


It  will  be  noted  that  the  addition  of  the  three  firms  for  whom 
records  for  only  three  years  were  obtained,  while  increasing  the 
total  cost  figures  for  those  years  by  about  one-seventh  (from 
$39,134,347  for  the  9  firms  up  to  $45,368,654  for  the  12  firms)  do 
not  materiaUy  alter  the  proportions  which  the  different  subdivisions 
of  cost  form  of  the  total  cost.  Therefore,  the  figures  for  the  9  firms 
shown  for  the  longer  period  can  be  accepted  as  representative,  and 


^ 


REPORT  ON  WOOLEN  RAG  TRADE. 


39 


the  discussion  of  these  various  elements  of  cost  will  be  based  on  the 
1914-1917  figures. 

The  cost  of  raw  material  includes  the  cost,  delivered  at  ware- 
house, of  the  rags  bought.  It  includes  besides  the  amount  paid 
for  the  rags,  any  payments  made  for  freight  and  cartage  inward. 
The  proportion  which  the  cost  of  raw  material  formed  of  the  total 
cost  was  lowest  in  1914,  being  then  about  85  per  cent,  and  being 
around  90  per  cent  during  each  of  the  next  three  years.  Reference 
to  the  tables  and  charts  in  this  report  showing  prices  of  used  rags 
and  clips  indicates,  as  the  explanation  of  this  increase  in  proportion, 
the  generally  higher  prices  of  rags. 

Under  ''Sorting  and  handhng  of  materials,"  the  item  of  labor 
includes  all  labor  of  handhng,  sorting,  and  bahng  of  aU  the  various 
grades  within  the  plant  or  in  warehouse.  The  proportion  which  the 
cost  of  labor  formed  of  the  total  cost  was  lowest  m  1915,  being  then 
3.3  per  cent  and  highest  in  1914  (5  per  cent).  It  was  rising  during 
the  three  years  1915-1917,  reaching  4.3  per  cent  in  1917.  The  item 
of  expense  includes  aU  charges  such  as  insm-ance  on  stock,  ^^  arehouse 
rent,  power,  heat,  light,  etc.,  in  connection  with  the  stock  sold  and 
on  hand.  The  proportion  which  it  formed  of  the  total  cost  was 
highest  (2  per  cent)  in  1914.  It  was  about  1  per  cent  during  the 
next  three  years. 

Due  to  the  lack  of  clear  distinction  in  the  original  records  in  some 
cases  between  charges  for  administration  expense  and  those  for  selling 
expense,  the  two  are  shown  combined  in  the  foregoing  tables.  Ad- 
ministration expense  includes  office  clerks'  salaries,  stationery  and 
printing,  legal  services,  officers'  salaries,  etc.  In  every  case  the  amount, 
if  any,  of  officers'  or  partners'  salaries  paid  during  the  period  was  ob- 
tained. Such  salaries  averaged  1.2  per  cent  of  the  total  cost  of 
operation,  for  the  9  firms  whose  records  were  obtained  during  the 
four-year  period,  and  1.2  per  cent  foi  the  12  firms  (including  the 
preceding  9),  whose  records  were  obtained  during  the  three-year 
period.  The  selling  expense  includes  freight  and  cartage  inward, 
salesmen's  salaries,  commissions,  etc.  In  the  case  of  6  firms  for 
which  records  could  be  obtained  for  the  four-year  period,  it  was 
possible  to  secure  a  separation  between  administration  and  selling 
expense.  The  figures  cover  the  sales  amounting  to  $28,736,411 
during  the  four  years,  and  show  that  for  these  6  firms  the  adminis- 
tration expense  was  2.8  per  cent  of  the  total  cost,  and  the  selling 
expense  likewise  was  2.8  per  cent.  Corresponding  statistics  for  8 
firms  (including  the  foregoing  6)  for  which  records  were  obtained 
for  three  years,  are  2.6  per  cent  for  administration  and  2.5  per  cent 
for  selling.  The  sales  for  the  8  firms  amounted  to  $29,337,028  during 
the  three  years. 


I 

3i 


40 


KEPOKT  ON  WOOLEN  BAG  TRADE. 


Relation  of  coH  oj  operatwn  to  saUs.-^The  combined  sales  of  the 

loTTfai  J  ^  ^""^  'Tf,^'  "^^"^  oUained  for  the  four-year  period, 
1914-1917,  were  as  follows: 


1914. 


1915  **" $6,007,296 

1917 • 15,190,138 

• 16,092,719 

^°**^ - l^in^ 

^   The  combined  sales  of  the  total  12  firms  (including  that  of  the  9 
rLuow''''^  ^^""^  ^^'^  ^^^'''  ^^''''''^  "^"'^  "^^^^^^^  ^^ 


1915. 


191g  *13, 044,  332 

1917 18,383,900 

18,521,463 

^""^^ 49,94M95 

In  the  foUowing  table  are  shown  the  combined  annual  sales  of  the 
9  firms  for  which  records  were  available  for  four  years,  the  cost  of 
operation,  and  the  proportion  of  the  amount  received  from  sales 
which  was  absorbed  by  the  cost: 


Table  9. —Relation  of  sales  to  cost  of  operation,  of9fi 


rms,  1914^1917. 


Year. 


1914.., 
1915... 
1916... 
1917... 


Bales. 


Cost. 


•6,007,296 
11,401,248 
15,690,138 
16,092,719 


15,47],  239 

9,840,665 

14,162,307 

15,1W,485 


Percent. 


91 
86 
90 
93 


Similar  statistics  for  the  12  firms  (including  the  9  just  referred  to) 
for  which  records  for  three  years  were  available  are  as  foUows: 


Table  10.— Relations  of  sales  to  cost  of  operation,  of  12  fii 

TMS,  1915-1917. 

Year.  . 

Sales. 

Cost. 

Percent. 

1915.. 
1916.- 

•13,044,232 
18,383,900 
18,521,463 

•11.252,7*4 
16,721,874 
17,394,011 

8ft 

1917 

91 
94 

tn?^  ^  °*'***^  ****"*  *^^  prbportion  of  cost  to  sales  was  lowest  in 
1915  (86  per  cent)  and  that  it  increased  each  subsequent  year 
reaching  m  1917,  93  per  cent  in  the  case  of  the  9  firms,  and  94  pe^ 
cent  m  the  case  of  the  12  firms. 

Investmevt.~¥oT  the  purposes  of  this  report  the  investment  was 
determmed  by  takmg  the  total  assets  directly  employed  in  the 
busmess,  less  the  current  liabilities.    The  combined  investment  of 


»    I 


II,  580, 454 
2,227,536 
3,  690, 286 


REPORT  ON  WOOLEN  RAG  TRADE.  41 

iot/i^^  ^''''  ^^''}  ^^'^''^  ^""^^  obtained  for  the  four-year  period 
1914-1917,  was  as  follows: 

Jan.  1,1914 

ja»i.  1,1915 !]!!!!;;]!;;; 

Jan.1,1916 

Jan.  1,1917 ;;;;; 

^•^'^«^« ::::::::::  JSSo 

It  will  be  noted  that  there  was  a  rapid  rise  from  January  1    1914 
to  Januaiy  1    1917,  but  that  during  1917  there  was  httle  increase! 
The  combmed  investment  of  the  total  12  firms  (including  that  of 
the  9  just  mentioned)  for  whictt  three-years'   records   were   ob- 
tamed  was  as  follows: 

Jan.  1,1915 ,.„  ._  _ 

Jan.  1,1917 ^'^^^'216 

ToTi    1  1Q1C  0,726,434 

•^^''•^'^^^^ 5,996,012 

ReUtion  of  net  earnings  to  investment. ~¥ov  the  purposes  of  this 
report  the  net  earnings  were  taken  as  the  net  sales  less  costs  of 
operation  as  described  above.  Interest,  federal  taxes,  and  other 
such  financial  items  were  not  deducted.     In  the  following  table  are 

tTTi^        r     r^  .^^^^^^°^^^<^  ^*  ^he  begmning  of  each  year,  of 
the  9  firms  for  which  it  was  possible  to  secure  records  for  four  years 
the  net  earmngs  for  each  year,  and  the  percentage  which  the  net 
earmngs  bore  to  the  investment: 

Table  11.— Relation  ofn£t  earnings  to  investment  of  9  firms,  1914-1917. 


Year. 


1914. 
1915. 
1916. 
1917. 


Investment 

at  beginniiig 

of  year. 


Net  eaminiTs. 


11,580,454 
2,227,535 
3,690,286 
5,176,887 


S536,057 

1,563,583 

1,527,931 

988,234 


Per  cent. 


34 
70 
41 
1» 


ri^^  f  ^*''*''!  n""'  *^'  ^^'^^'  ^"^   (including  the   nine  just 
referred  to)  are  as  follows:  ^ 

^®^^  12.— /?efe<ton  of  net  earnings  to  investment  of  12  firms,  1915-1917. 


Year. 


1915. 
1916. 
1917. 


Investment 

at  beginning 

of  year. 


Net  earnings. 


12,472,542 
4,176,216 
5,726,434 


«1, 791, 468 
1,662,036 
1.127,452 


Per  cent. 


73 
40 
20 


It  will  be  noted  from  the  above  tables  that  the  per  cent  of  net  eam- 
mgs  to  mvestment  was  highest  in  1915,  being  70-72  per  cent,  and 
lowest  m  1917,  being  19-20  per  cent. 


42 


REPORT  ON  WOOLEN  RAG   TRADE. 


Relation  of  sales  to  investment  {annual  rate  of  turnover). — In  the  fol- 
lowins:  tables  are  shown  the  relation  of  sales  to  investment  (sometimes 
known  as  the  "annual  rate  of  turnover;').  The  statistics  for  the 
9  firms  for  which  records  for  four  years  were  available  are  as  follows . 

Table  13. — Relation  of  sales  to  investment  of  9  firms.,  1914-1917. 


Year. 


1914 ^ 

1915 

1916 

1917 


In  vestment 

at  beginning 

oi  year. 


$1,580,454 
2,227,5.35 
3, 690, 286 
.%176,8S7 


$6,007,296 
11,404,218 
lo,690,13« 
16,092,719 


Rato 
of 
turnover. 


3. 8  times. 
5. 1  times. 
4.3  times. 
3.1  times. 


Similar  figures  for  the  12  firms  (includinjic  the  above  9)  for  ^v  liich 
records  for  three  years  were  available  are  as  follows: 

Table  14. — Relation  of  sales  to  investment  of  12  firms,  1915-1917. 


Year. 


1915 
1916 
1917 


Investment 

at  beginning 

of  year. 


12,472.542 
4, 176; 216 
6,726,434 


Sales  during 
year. 


$13,044,2:^2 
18,383,900 
18,521,463 


Rate 

of 

turnover. 


5.3  times 

4. 4  times. 
3.2  times. 


Relation  of  annual  rate  of  turnover  to  annual  rate  of  earnings. — ^The 
correlation  between  the  decrease  in  rates  of  earnings  and  rate  of 
turnover  is  clearly  seen  in  the  following  table: 

Table  15. — Relation  of  anrmal  rate  of  turnover  to  annual  rate  of  earnings. 


Year. 


1914 
1915 
1916 
1917 


Nine  firms. 


Rate  of 
earning. 


Rate  of  turnover. 


Per  cent 
34 
70 
41 
19 


3.  R  times. 
5. 1  times. 
4. 3  times. 
3. 1  times. 


Twelve  firms. 


Rate  of 
earning. 


Per  ctnl 


72 
40 

ao 


Rate  of 
turnover. 


5. 3  times. 

4. 4  times. 
3. 2  times. 


It  will  be  noted  that  the  increase  of  the  investment  in  the  business, 
necessitated  mainly  by  the  greatly  higher  cost  of  the  raw  materials 
(used  rags  and  clips)  resulted  in  cutting  down  the  annual  rate  of 
turnover  possible  on  a  given  amount  of  investment.  This  in  turn 
affected  the  annual  rate  of  earnings  on  the  investment. 


REPORT  ON   WOOLEN  RAG  TRADE. 


43 


3,  Classification  of  grades  and  names  of  used  rags  and  clips. 

The  confusion  due  to  Uck  of  definite  and  accepted  standards.— At 
the  very  outset  oi  its  investigation,  the  Commission  found  a  state  of 
confusion  in  the  trade,  as  to  the  precise  nature  of  the  materials  that 
should  be  included  under  the  various  grades,  and  as  to  the  names 
of  the  grades.  *  . 

The  general  unit  covering  transactions  in  both  new  and  old  rags  is 
a  bale.  Bales  vary  in  weight  between  four  hundred  and  a  thousand 
pounds:  each  bale  is  made  up  of  hundreds  of  pieces  of  material.  In 
new  rags  the  pieces  run  in  small  squares  or  little  strips  of  irregular 
shape,  many  as  small  as  two  inches  square.  In  old  rags  the  pieces 
vary  from  half  a  foot  to  several  feet  square.  The  nieces  which  go 
to  make  up  the  bale  do  not  come  from  a  single  source  but  have  been 
gathered  from  various  places.  This  is  especially  true  in  the  case  of 
a  bale  containing  finely  graded  rags.  While  the  bale  may  be  called 
by  the  name  of  the  kind  of  rags  of  which  it  is  chiefly  composed, 
there  is  no  regularly  accepted  standard  of  contents  or  quality.  Thus, 
two  bales  called  by  the  same  name  may  vary  widely  in  their  actual 
contents.  There  are  no  rules  or  customs  which  govern  the  make-up 
of  a  bale  of  rags  and  which  provide  that  it  shall  contain  certain 
things  and  shall  not  contain  certain  other.  In  the  present-day  rag 
trade  a  bale  of  rags  said  to  contain  rags  of  a  given  grade  has  no  exact 
duplicate  in  the  trade,  and  an  order  placed  for  100  such  bales,  one 
from  each  of  100  dealers  would  bring  together  100  bales  which  at 
best  would  only  approximately  resemble  each  other.  Furthermore, 
a  bale  of  rags  derives  its  value  from  the  uses  to  which  it  can  be  put 
in  the  manufacture  of  shoddy.  If  a  bale  of  ''White  knits"  be  con- 
verted into  shoddy  and  mixed  with  white  cloth  or  pieces  of  dark 
cloth,  it  will  adversely  nffect  the  shoddy  produced  from  the  bale. 
The  result  is  that  a  bale  of  '' WJiite  knit''  rags  loses  its  real  commer- 
cial value  unless  it  is  what  it  purports  to  be  and  has  been  freed  of 
other  fabrics  whicli  would  damage  the  shoddy.  What  holds  the 
rag  dealer  to  his  grades  is  the  fact  that  his  sales  are  subject  to  re- 
jection and  that  the  good-will  of  his  business  rests  upon  the  extent 
to  which  he  actually  supplies  the  grades  that  he  purports  to  sell. 
But  in  the  trade  to-day,  there  is  no  ''perfect  packing"  as  it  is  called 
by  dealers.  All  packings  are  merely  approximations — no  accepted 
standardization  exists.  This  fundamental  situation,  moreover,  is 
comphcated  by  disadvantages  of  a  more  elementary  character  which 
could  be  readily  enough  minimized,  even  though  the  perfect  stand- 
ardization might  not  be  practicable. 

These  are,  primarily,  twofold.  First,  the  lack  of  standards  in 
packing  results  in  the  production  of  a  number  of  packings,  which  are 
usually  known  as  distinct  grades  being  dealt  in  under  a  common 
grade  name,  instead  of  imder  their  usual  trade  names.     For  example, 


44 


KEPOKT  ON  WOOLEN  BAG  TRADE. 


such  kindred  grades  as  "Red  softs/'  "Red  knits/'  "Red  flannels/' 
and  "Red  serges"  aie  packed  with  such  lack  of  observance  of  the 
distinctions  between  them  that  the  names  are  often  used  inter- 
changeftblv.  Technically  and  accurately,  if  the  bale  represents  a 
mixture  of  "  Red  knits/'  Hannels  and  serges  it  should  be  designated  as  * 
"Red  softs"  (mixed).  A  preponderance  of  serge  rags  in  a  bale 
should  not  entitle  the  bale  to  be  designated  as  "Red  serge"  although 
that  is  frequently  done.  The  result  is  that  a  dealer  himself  scarcely 
knows  when  a  bale  which  he  has  in  hand  is  really  "Red  serge"  or 
"Red  knit"  or  "Red  flannel/'  or  actually  "Red  softs."  This  diffi- 
culty occurs  in  far  more  frequent  and  complicated  form  amongst  the 
classes  and  grades  of  "New  woolen  clips"  which  are  considerably 
more  varied  than  the  grades  of  old  rags.  When  it  is  realized  that 
the  grade  of  "Fine  dark  cloth"  and  "Worsted  clips"  can  contain 
precisely  the  same  material  as  "Dark  worsteds";  that  the  grade 
"Fine  light  cloth  and  worsteds  mixed"  can  contain  black  and 
white  and  also  tan  colors  and  yet  that  the  black  and  white  and  the 
tan  colors  can  each  constitute  separate  grades  and  are  actively  dealt 
in  as  such,  it  will  be  understood  that  the  careless  use  by  dealers  of 
the  names  applied  by  them  to  the  grades  they  are  handling,  leads  to 
much  confusion.  Thus  different  grades  which  are  very  much  alike 
are  easily  confused  and  improperly  designated. 

In  the  second  place  there  is  an  additional  confusion  due  to  the 
fact  that  in  some  instances,  a  particular  grade  may  be  known  by  two 
or  three  names  having  no  similarity  to  each  other  whatsoever.  A 
stock  illustration  is  that  the  grade  of  "Old  knits"  known  as 
"Dark  hoods"  bears  also  the  trade  designations  of  "Fancy  knits" 
and  "Comforters."  In  everyday  parlance  in  the  trade,  furthermore, 
abbreviations  are  used  which  .are  absolutely  incomprehensible  to  the 
dealers  themselves  unless  they  have  at  hand  the  material  to  which 
the  abbreviated  designations  relate.  Thus,  the  term  "Fine  lights" 
could  apply  to  both  a  new  rag  and  an  old  rag  and  to  several  grades  of 
each.  The  confusion  in  the  trade  in  this  respect  made  its  reports  to 
the  War  Industries  Board  often,  at  first,  unintelligible. 

As  soon  as  the  Government,  through  the  War  Industries  Board, 
established  a  regulation  of  prices  in  the  trade,  it  became  essential 
for  the  purpose  of  establishing  a  basis  upon  which  the  industry  as 
a  whole  might  be  dealt  with,  that  the  features  above  referred  to  be 
remedied  as  far  as  possible,  and  that  the  trade  be  placed  on  a  basis 
where  both  the  dealers  and  the  Government  might  know  definitely 
what  was  to  be  the  grading  of  the  commodities  handled  by  the 
trade  and  by  what  names  the  grades  were  to  be  known. 

There  were  not  only  unnecessary,  illogical  and  ill-applied  names 
of  grades  current  in  the  trade,  but  there  were  also  certain  more  or 
less  obsolete  groupings  or  packings  of  rags  which  could  be  used  to 


REPORT  ON  WOOLEN  RAG  TRADE.. 


45 


better  advantage  in  making  certain  grades  which  had  a  definite  use 
and  market. 

The  classification  compiled  hy  the  Federal  Trade  Commission.— An 
attempt  has  been  made  to  present  a  complete  classification  of  all 
grades  which  must  be  taken  into  consideration  in  the  rag  trade, 
without  omitting  any  essential,  reasonably  required,  grade;  and  to 
give  each  grade  a  definite,  clear,  imambiguous  name  which  of  itself 
carries  a  definition  of  the  precise  nature  of  the  fabric  to  be  included, 
and  yet  is  sufficiently  exclusive  to  prevent  the  inclusion  of  other 
fabrics.  The  object  has  been  twofold;  to  make  each  grade,  thus 
selected,  so  definite  that  a  price  could  be  placed  upon  it  based  on 
known  information  as  to  the  value  of  the  product  for  commercial 
purposes,  and  also  to  prevent  the  sale  of  a  commodity  under  a  wrong 
grade  name.  Special  care  has  been  taken  in  the  arrangement  and 
selection  of  terms  with  a  view  to  making  a  completely  imiform, 
logical  and  clear  classification. 

This  classification  while  in  itself  required  as  a  basis  for  the  con- 
ductmg  of  the  mquiry  by  the  Federal  Trade  Commission,  likewise 
presented  the  one  immediate  basis  which  permitted  of  the  establish- 
ment and  enforcement  of  fundamental  regulations  with  respect  to 
the  trade.  It  was  revised  in  cooperation  with  the  War  Industries 
Board,  by  whom  the  list  was  to  have  been  used.  That  Board, 
through  its  chief  of  woolens  section,  Mr.  Herbert  E.  Peabody,  had 
selected  for  this,  among  other  purposes,  Mr.  D.  Morley  Lodge,  a 
dealer  in  the  trade  located  in  Boston,  Mass.  Mr.  Lodge  made  a 
careful  revision  of  this  hst.  This  revised  classification  which  is  pre- 
sented in  this  report,  is  one  of  the  fundamental  steps  taken  by 
the  Commission  toward  the  supplying  of  requisite  data  for  the  estab- 
lishment and  enforcement  of  prices  on  woolen  rags.  It  was  infor- 
mally decided  that  this  list  should  be  used  in  establishing  future 
prices  on  rags.  The  complete  classification  is  to  be  found  in  the 
Appendix  (Exhibit  XIII)  and  an  outlme  of  its  chief  subdivisions  is 
presented  herewith. 

SumrrMryofmainclassiJicaHonsofuoolenrngs, 
Old  woolen  rags : 

Mixed  country  rags. 

Soft  woolens — 

Ungraded  soft  woolens. 

Graded  soft  woolens. 
Hard  woolens — 

Rough  cloth. 

Skirted  cloth 
Carpets. 
Felts. 
Haircloths. 
Linseys. 
Seams. 


V 


46 


HEPORT  ON  WOOLEN  RAG  TRADE. 


New  woolen  rags: 

New  woolen  clips  ungraded — 

Miscellaneous  cuttings  of  wool  and  straight  colion  materials,  mixed. 
Men's  wear. 
Women's  wear. 
Carriage  and  auto  clips. 
Felte. 
Headings  ungraded. 
Graded  clips  and  headings — 
Mixed  materials. 
Straight  materials — 

Bunting. 

Cheviots. 

Flannels. 

Delaines  (including  alpaca). 

Homespuns. 

Kerseys. 

Mackinaws. 

Palm  beach. 

Serges. 

Uniform  materials. 

Unions. 

Worsteds. 
Miscellaneous  additional  materials. 

The  application  of  a  standard  classification  to  the  trading  in  ungraded 
rags  and  clips, — ^As  has  already  been  pointed  out,  the  used  woolen 
rags  when  first  collected  are  obtained  from  ''Mixed  country  rags," 
which  yield  on  the  average  from  20  to  30  per  cent  of  their  weight  in 
woolen  rags.  The  used  woolen  rags  are  first  sorted  into  general 
classifications,  of  which  the  principal  ones  are  ''Soft  woolens"  (some- 
times called  "Mixed  softs"),  and  "Hard  woolens,"  known  in  the 
trade  as  "Rough  cloth."  These  are  the  two  large  groups  and 
further  subjected  to  elaborate  classification  and  grading. 

While  in  some  instances  clips  are  collected  in  such  shape  as  to 
require  little  or  no  further  subclassification  and  grading,  in  otlier  cases 
the  first  collection  results  in  the  accumulation  of  clips  of  many  differ- 
ent kinds.  These  are  known  as  " Ungraded  clips, "  and  like  the  "Soft 
woolens"  and  "Rough  cloth"  classes  of  used  rags,  are  subjected  to 
further  classification  and  grading. 

Old  rags. — It  is  evident  that  the  value  of  any  collection  either 
of  "Soft  woolens,"  of  "Rough  cloth,"  or  of  "Ungraded  clips" 
will  depend  greatly  on  the  proportion  of  the  more  desirable  grades 
which  it  will  yield,  and  that  the  price  paid  for  such  a  collection  will 
bear  some  relation  to  its  supposed  content  of  the  higher  priced 
grades.  There  has  been  no  recognized  standard  of  the  relative 
proportions  of  the  high  and  low  value  grades  wl^ch  could  be 
expected  from  any  particular  collection  of  "vSoft  woolens,"  "Rough 
cloth,"  or  "Ungraded  clips."  It  varies  greatly  according  to 
locality  and  to  the  practice  of  the  individual  packer.     There  has 


REPORT  ON  WOOLEN  RAG  TRADE. 


47 


been  constant  complaint  in  the  trade  on  the  part  of  the  buyers 
that  when  certain  grades  were  in  demand  at  good  prices,  the 
packer  put  a  much  smaller  proportion  of  such  grades  into  his  "pack" 
of  "Soft  woolens,"  "Rough  cloth,"  or  "Ungraded  clips,"  and  sold 
the  balance  which  he  had  collected  at  a  much  higher  price  than  he 
would  otherwise  get  for  them.  As  a  result  of  the  personal  e4uation 
certain  packers  who  have  a  high  reputation  for  the  character  of  their 
"pack"  regularly  receive  prices  for  their  mixed  collections  sub- 
stantially above  what  other  packers  in  the  same  localities  receive  for 
rags  sold  under  a  similar  title. 

An  illustration  of  the  differences  in  the  value  between  one  lot  of 
ungraded  rags  and  another,  both  of  which  would  come  mider  the 
same  general  class  and  be  sold  at  the  same  price,  is  afforded  in  the 
following  comparison  for  "Skirted  cloth"  derived  from  "Rough 
cloth. "  The  lot  designated  as  "A"  shows  the  proportions  of  "  Skirted 
cloth,"  which  was  derived  from  a  test  made  of  91,696  pounds  of 
"Rough  cloth,"  the  price  of  which  was  taken  as  8}  cents.  This  pro- 
duced 52,289  pounds  of  skirted  cloth.  The  lot  designated  as  "B" 
represents  the  judgment  of  one  of  the  most  experienced  sorters  in  the 
trade  as  to  the  average  he  would  expect  to  get  when  bu3ring  "  Rout^h 
cloth."  The  prices  per  pound  applied  to  the  graded  material  are  in 
each  case  those  officially  promulgated  by  the  War  Industries  Board 
under  date  of  August  19,  1918. 

Table  16— Comparison  of  ''Skirted"  products  obtained  from  a  lot  of  ''Rough  cloth" 

with  an  expert's  estimate  of  normal  contents. 


Grade. 

Price 

per 

pound. 

A. 

B. 

Pounds. 

Per 

cent. 

Value. 

Pounds. 

Percent. 

Value. 

Skirted  satinets 

Cents. 
4 

8i 
10 
10 
10 
10 
12 
15i 
17 
17 
18^ 
21 
22 
23 
25 
25 

212         0. 4 
5,195          9.9 
6,181  {      11.9 
2  3Qf)  1          A  ft 

$8.48 
441.57 
618. 10 
239.60 
186.90 
68.80 
8.16 
761.83 
268.09 

1,450.78 
354.28 

1,442.70 
916. 74 
556.14 

1,012.50 
308.50 

2 
13 
12 

2 

2 
13 
12 

7 
2 

$0.08 

Dark  skirted  cloth 

Black  skirted  cloth 

1.14 

Blue  skirted  cloth 

1.20 

Brown  skirted  cloth 

1,869 
688 
68 
4,915 
1,577 
8,534 
1,915 
6,870 
4,167 
2,418 
4,050 
1,234 

3.6 
1.3 
.1 
9.4 
3.0 

16.4 
3.7 

13.2 
7.9 
4.6 
7.7 
2.3 

.  -0 

Skirted  cloth  (from  mixed  rags) 

.20 

Fine  black  skirted  cloth 

Light  skirted  cloth 

16 

16 

Black  and  white  skirted  cloth 

2.48 

Dark  skirted  worsteds 

16 

16 

n   "m 

Fine  light  skirted  cloth 

2.72 

Blue  skirted  worsteds 

14 
*i 

7 

1 

14 

4i 

1 

2.94 

.99 

1.26 

1.75 

.25 

Black  skirted  worsteds 

Brown  skirted  worsteds 

Light  skirted  worsteds 

Tan  skirted  cloth 

Total 

52,289 

100.0 

8,643.17 
16.5 

100 

100- 

15.71 
15.7 

Average  value  (cents  per  pound) 

1 

The  following  table  shows  the  proportion  and  values  of  the  total 
products  obtamed  from  the  92,727  pounds  of  "Rough  cloth"  which 
produced  the  "Skirted"  cloth  shown  imder  "A"  in  the  preceding 
table. 


48  REPORT  ON  WOOLEN  RAG  TRADE. 

Table  17. — All  product*  obtained  from  a  sample  lot  of  '^  Rough  clotk.*^ 


Grade. 


Skirted  cloth: 

Skirted  satinets 

Dark  skirted  cloth 

Black  skirted  cloth 

Blue  skirted  cloth 

Brown  skirted  cloth 

Skirted  cloth  (from  mixed  rags). 

Fine  black  skirted  cloth 

Light  skirted  cloth 

Black  and  white  skirted  cloth. . . 

Dark  skirted  worsteds 

Fine  light  skirted  cloth 

Blue  skirted  worsteds , 

Black  skirted  worsteds , 

Brown  skirted  worsteds 

Light  skirted  worsteds 

Tan  skirted  cloth 

Other  products: 

Strippings 

Roupi  satinets 

Rough  vests 

Wool  bodies 

Tare 

Shrinkage 


Pounds. 


Total 

Average  value  (cents  per  pound) . 


212 

5,195 
6,181 
2,396 
1,869 
688 
68 
4,915 
1,577 
8,534 
1,915 
6,870 
4,167 
2,418 
4,050 
1,234 

34,050 
1,124 
317 
1,167 
2,749 
1,031 


Percent. 


0.2 
5.7 
0.6 
2.6 
2.0 
.7 


92, 727 


5.3 

i:; 

2.1 
7.7 
4.  A 
2.6 
4.4 
1.3 

3fl.  .1 
12 
.8 
l.S 
2.f 
1.1 


Value. 


100.0 


S8.48 
441.57 
618. 10 
239.60 
186.90 
68.80 
8.16 
761.83 
268.09 

1,450.78 
354.28 

1,442.70 
916. 74 
556.14 

1,012.50 
808.50 

1,106.62 

36.53 

14.26 

102. 10 

240.53 


10, 143. 21 
10.9 


A  comparison  made  for  grades  derived  from  a  lot  of  '^  Mixed 

softs"  (A)  containing  86,055  pounds,  with  (B)  an  expert's  estimate 

of  the  normal  contents  of  "Soft  woolens,"  is  shown  in  the  following 

table : 

Table  18. — Comparison  of  graded  products  derived  from  a  lot  of  "Soft  iwolens^'  with 

an  expert's  estimate  of  normal  contents. 


Small  merinos , 

Light  gray  - 

Coarse  dark  merinos  with  serges. 

Blue  flannels , 

Fancy  knit 

Red  sorts 

Black  serges 

Coarse  light  merinos  with  serges. 

Red  flannels 

Blue  serges 

Fine  dark  merinos 

Black  merinos 

Blue  knits 

Red  knit 

Red  serges 

Black  knit 

Green  knit 

Light  serges 

Brown  sergfes 

Green  serges 

Fine  light  merinos 

Brown  knit 

Light  hoods 

Gray  knit 

White  flannels 

White  softs 

White  knit 


Price 

per 

pound. 


Total 

Average  value  (cents  per  pound). 


Cents. 
9 
16 
16 
18 
21 

2U 

22 

24 

24 

25 

25 

25 

26 

27 

28 

30 

30 

32 

32 

32 

32 

32 

38 

45 

50 

52 

56 


Pounds. 


286 
2,567 
7,166 

465 
2,299 


7,572 
9,733 

904 
9,198 
9,547 
1,957 
2,559 
3,164 
1,058 
2,385 
6 

963 
1,514 

944 
1,716 

492 
1,984 
3,270 
1,653 


Per 
cent. 


0.4 
3.4 
9.5 
.6 
3.0 


2,211 


75,613 


10.0 

12.9 

1.2 

12.3 

12.7 

2.6 

3.4 

4.2 

1.4 

3.1 


Value. 


$25. 74 

410. 72 

1,146.56 

83.70 

482.79 


Pounds. 


5 
11 


1.2 
2.0 
L2 
2.3 
.6 
2.6 
4.3 
2.2 


2.9 


1,665.84 

2,335.92 

216. 96 

2,299.50 

2,386.75 

489.25 

678. 13 

870. 10 

296.24 

715.50 

1.80 

308.16 

484.48 

302.08 

549. 12 

157.44 

753.92 

1,471.50 

826.50 


1,238.16 


100.0 


20,196.86 
26. 


3 

3i 
14 
13 


12 
13 


1 
2 


Percent. 


5.0 
11.0 


3.0 

3.5 

14.0 

13.0 


12.0 
13.0 


3.0 


Value. 


SO.  80 
1.76 


.63 


.75 
3.12 


3.00 
3.25 


,79 


LO 
2.0 


n 

5 
2 

li 
3 


100.0 


3.5 
1.5 
5.0 
2.0 
1.5 
3.0 


3.0 


100.0 


.28 
.60 


1.12 
.48 

1.60 
.64 
.57 

1.35 


1.56 


22.30 
22.3 


% 


REPORT  ON  WOOLEN  RAG  TRADE. 


49 


The  following  table  shows  the  proportion  and  value  of  the  total 
products  obtamed  from  the  86,055  pounds  of  "Mixed  softs"  which 
produced  the  graded  products  shown  under  "A"  in  the  preceding 
table : 

Table  \^.~All  products  obtained  from  a  sample  lot  o/"  Mixed  softs.'^ 


Grade. 


Graded  product ts: 

Sraill  merinos 

Liijht  gray  imderwear 

Coarse  dark  merinos  with  serges. . 

Blue  flannels 

Fancy  knit 

•  Black  serges 

Coarse  light  merinos  with  serges . 

Red  flannels 

Blue  serges 

Fine  dark  merinos 

Black  merinos 

Blue  knit 

Red  knit 

Red  serges 

Black  knit 

Green  knit 

Li!^ht  series 

Brown  ser^^es 

Green  serges 

Fine  light  merinos 

Brown  knit 

Light  hoods 

Gray  knit 

White  flannels 

White  knit 

Miscellaneous  products: 

Mixed  linseys 

Voiles 

Wool  bodies 

Skirted  cloth 

Tare 


Price 

per 

pound. 


Yellow  blankets . 

Clips 

Shrinkage 


Total 

Average  value  (cents)  per  pound. 


Cents. 
9 
16 
16 
18 
21 
22 
24 
24 
25 
25 
25 
26 
27J 
28' 
30 
.30 
32 
32 
32 
32 
32 
38 
45 
50 
56 

^ 

8 

H 

10 
21i 
25 
32 


Pounds. 


286 
2,567 
7,166 

465 
2,299 
7,572 
9,733 

904 
9,198 
9,547 
1,957 
2,559 
3,164 
1,058 
2,385 
6 

963 
1,514 

944 
1,716 

492 
1,984 
3,270 
1,653 
2,211 

3,138 
137 
101 
2,793 
3,552 
141 
165 
415 


Percent. 


0.3 

3.0 

8.3 

.5 

2.7 

8.8 

11.3 

1.0 

10.7 

11.1 

2.2 

3.0 

3.7 

1.2 

2.8 


Value. 


86,055 


1.1 
1.8 
1.1 
2.0 
.6 
2.3 
3.8 
1.9 
2.8 

3.6 
.1 
.1 
3.2 
4.1 
.2 
.2 
.5 


100.0 


$25.74 
410.72 

1,146.56 

83.70 

482.79 

1,66.5.84 

2,335.92 
216.96 

2,299.50 

2,386.75 
489.25 
678. 13 
870. 10 
296.24 
715.50 
1.80 
308.16 
484.48 
302.08 
549.12 
157.44 
7.53.92 

1,471.50 
826.50 

1,238.16 

141.21 

10.96 

8.84 

279.30 

763.63 

35.25 

52.80 


21,488.85 
25 


It  will  be  clear  from  the  foregoing  examples  that  the  value  of  any- 
particular  lot  of  ''Mixed  softs,"  or  ''Rough  doth,"  will  have  only  a 
general  relation  to  that  of  some  other  lot,  whether  determined  by  the 
amount  of  skirted  and  graded  rags  obtained,  or  by  the  total  value  of 
all  the  product. 

It  will  be  necessary,  therefore,  should  a  standard  classification  of 
grading  be  adopted,  to  specify  the  proportions  of  the  different  grades 
which  shall  be  contained  in  a  standard  collection  of  "Rough  cloth," 
"Soft  woolens"  (Mixed  softs),  and  to  fix  the  price  of  any  particular 
lot  sold  imder  those  names,  by  the  relation  that  the  proportion  of 
grades  and  the  average  total  value  per  pound  of  its  actual  contents, 
determined  by  sampling,  or  after  sorting,  bears  to  the  proportion  of 
grades  and  average  value  of  the  standard.  This  method  is  similar 
to  those  in  use  by  traders  in  wheat,  cotton,  and  some  other  products 
of  a  similar  nature,  where  the  material  is  produced  in  ungraded  form. 

New  clips,— ^ew  rags,  or  "clips,"  originate  in  an  entirely  different 
fashion  from  old  rags.  They  are  the  product  of  two  general  classes  of 
manufacture:  The  men's  wear  trade,  usually  designated  as  clothing 
141957—20 4 


50 


REPORT  ON  WOOLEN  RAG  TRADE. 


il 


manufacturers  and  merchant  tailors,  and  the  women's  wear  trade, 
known  as  cloak  and  suit  manufacturers.  The  product  of  the  latter 
passes  amongst  the  small  collectors  of  cuttings  from  these  houses 
by  the  term  ''Spring  wear,"  or  ''Springs." 

There  is  no  standard  of  imgraded  clips.  They  vary  as  the  materials 
from  which  they  are  cut.  Some  clothing  manufacturers  use  high 
grade  materials,  others,  inferior  grades,  while  others  use  both  kinds, 
in  varying  proportions  from  time  to  time.  Little  or  no  attempt  is 
made  when  cutting  up  to  keep  the  more  vtUuable  cuttings  from  the 
inferior.  The  result  is  that  on  the  whole  the  sorter  m^akes  only  the 
most  superficial  kind  of  a  separation  of  materials  and  the  gradc^r  has 
to  sort  out  carefully  the  specific  grades  which  he  sells  to  manufac- 
turers of  shoddy.  There  are  many  special  packings  of  new  clips 
arranged  for  the  manufacture  of  special  shoddies  and  it  is  the  general 
situation  that  clips  are  much  more  finely  subdivided  and  regraded 
than  are  worn  rags.  The  shoddy  manufacturers  themselves  also 
prepare  special  gradings  and  cidl  over  usual  gradings,  to  produce 
particular  shoddy  "specialties." 

IV.  EFFECT  OF  THE  EXPORT  OF  WOOL  RAGS  ON  THE  DO- 
MESTIC RAG  MARKET. 

Since  the  signing  of  the  Armistice  in  November,  1918,  the  exporta- 
tion of  woolen  rags  from  the  United  States  has  greatly  increased. 
Brief  consideration  will  be  given,  therefore,  to  the  export  of  rags 
although  this  has  heretofore  been  a  minor  feature  in  the  trade. 

Prior  to  1912  exports  of  woolen  rags  were  not  separately  reported 
by  the  Bureau  of  Foreign  and  Domestic  (Commerce,  of  the  Depart- 
ment of  Commerce.  Since  1912,  they  have  been  separately  reported. 
The  following  table  has  been  prepared  from  the  annual  reports,  and 
monthly  summaries  issued  by  that  bureau : 

Table  20.—Exj)orU  of  woolen  rags,  July  1,  1911-Sept.  30,  1919. 


Period. 


Fiscal  year  ending  June  30— 

1912 

1913 , 

1914 

1915 

1916 

1917 

1918 

Month  of — 

July,  1918 

August,  1918 

September,  1918 

Oftobcr,  1918 

Noveinl)cr,  1918 

December,  191S 

Januarj^  1919 

February,  1910 

March,  1919 

AT)ril.l919 

Maj',1919 

June,  1919 

July, 1919 

Aueust.1919 

September,  1919 


Quantity. 


Pounds. 
20,309,470 
27,774,382 
2(>,852,4')2 
24,784,022 
13,918,217 
13,071,472 
8,  .532,  243 

74, 1 18 

222,  rj-58 

48, 382 

07, 279 

124, ISl 

13.5.  mn 

1,012,194 

3,707,117 

5, 896,  254 

6,619,417 

1,466,973 

1, 148, 125 

723,068 

1,931,084 

2,958,626 


Value. 


1705,484 
923,184 
973,0.53 
1,388,934 
1,283,934 
1,629,130 
1,012,3.50 

8.992 

25, 170 

29,767 

It,  728 

S,92G 

11,971 

274,4i:9 

.507.0.51 

1,003,129 

1,240,755 

274, 561 

218,045 

147, 123 

347, 635 

451, 173 


1   1   • 


REPORT  ON  WOOLEN  RAG  TRADE. 


51 


Prior  to  the  war  the  United  Kingdom  received  about  75  per  cent, 
most  of  the  balance  going  to  Germany  and  Belgium.  Since  1915, 
the  United  Kingdom  and  Canada  have  received  about  90  per  cent, 
most  of  the  balance  going  to  Japan  and  Brazil. 

The  War  Trade  Board,  in  one  of  its  general  instructions,  issued 
September  24,  1917,  in  article  3,  section  10,  and  confirmed  in  official 
announcements  under  October  4,  and  10,  1917,  placed  an  embargo 
on  all  wool  products  for  the  purpose  of  conserving  wool  and  provided 
that  only  the  following  ten  grades  of  woolen  rags  were  to  be  regai-ded 
as  subject  thereto : 


Coarse  light  merinos. 
Coarse  dark  merinos. 
Fine  light  merinos. 
Fine  dark  merinos. 
New  khaki  clippings. 


Old  skirted  blue  serge. 
Old  skirted  blue  worsted. 
Old  skirted  dark  worsted. 
Old  sliirted  light  worsted. 
Old  khaki  rags. 


Shortly  thereafter,  on  November  13,  1917,  the  War  Trade  Board 
placed  a  far  more  complete  embargo  on  woolen  rags  by  providing 
that  the  only  grades  for  which  export  license  would  be  granted 
(instead  of  the  previous  regulation  barring  export  of  a  fe^v^ grades 
only)  would  be  the  following  five  grades  which  represent  material 
which  can  be  used  in  manufacturing  only  heavy,  hard,  dark  materials 
which  in  ordinary  times  are  not  manufactured  or  used  in  this  country. 
The  five  grades  were:  "New  and  old  felts  not  woven,"  "Plain  black 
dothr  "Plain  dark  cloth,"  "Plain  blue  cloth,"  and  "Plain  brown 
oloth."  This  provision  continued  in  effect  until  August  14,  1918, 
at  which  time  the  War  Trade  Board  issued  a  ruling  that  all  exports 
of  wool,  covering  thereby  all  woolen  rags,  were  prohibited  unless  the 
products. to  be  made  of  the  exported  goods  were  to  be  imported  into 
the  United  States  for  its  use. 

The  immediate  effect  of  this  ruling  was  a  rush  to  export  in  August, 
1918,  followed  by  a  marked  decline  in  exports. 

This  was  the  status  of  the  embargo  on  exports  of  woolen  rags  up 
to  the  time  of  the  Armistice.  On  November  18,  1918,  the  embaroro 
was  lifted  slightly  to  release  four  of  the  five  above-mentioned  grades ; 
and  on  December  10,  1918,  by  article  29,  part  2  of  its  general  instruc- 
tions, the  embargo  was  lifted  altogether. 

From  that  date  on  up  to  the  present  time  the  exportation  of  rags 
has  constituted  the  main  source  of  activity  in  the  woolen-rag  marked 
It  IS  probable  that  a  part  of  the  rise  in  the  prices  of  the  "Best 
mixed  soft"  and  "Rough  cloth"  and  "Blue  serge"  grades  of  used 
rags  may  be  due  to  the  demand  for  export  of  those  grades  subsequent 
to  the  removal  of  the  embargoes. 

Separate  statistics  for  the  importation  of  woolen  rags  are  not 
available.  The  table  following  shows  the  quantity  and  value  of 
woolen  rags  and  "flocks"  imported. 


-  52 


REPORT  ON  WOOLEN  RAG  TRADE. 


Table  21. — Imports  of  woolen  rags,  July,  1912- June^  1918. 


Period. 

Quantity. 

Value. 

Fiscal  vertr  ending  June  30— 

1913 

Pound  If. 

110,252 
3,911,708 
2, 15<.,  729 
1,373,014 
1,639,958 
1,121,147 

$29, 324 
378. 006 

1914..: 

1915 

190,331 

1910 

203,752 
202, 778 

1917 

1918 

222,529 

Imports  up  to  November  30,  1913,  were  subject  to  10  per  cent 
duty  per  pound.  Since  December  1,  1913,  they  have  been  admitted 
free  of  duty.  The  figures  for  the  fiscal  year  of  1914  are  as  follows: 
July  1  to  November  30,  1913,  22,238  pounds,  valued  at  $7,355; 
December  1,  1913,  to  June  30,  1914,  3,889,470  pounds,  valued  at 
$370,651.  The  effect  of  the  abolition  of  the  duty  is  evident  from  a 
comparison  of  the  imports  for  the  first  five  months  of  that  fiscal  year 
with  those  of  the  last  seven  months.  An  examination  of  the  course 
of  woolen-rag  prices,  does  not  show  any  marked  fall  in  domestic 
prices  directly  attributable  to  the  increase  of  imports,  though  it  is 
possible  that  there  was  some  check  to  a  poswsible  tendency  for  prices 
to  rise. 

V.  SUMMAEY  AND    CONCLUSIONS. 

Subsequent  to  the  outbreak  of  the  European  War,  heavy  orders 
for  woolens  were  placed  by  the  Allies  in  the  United  States.  The 
filling  of  these  orders  necessitated  the  use  of  unusually  large  c[uan- 
tities  of  shoddy  (or  reworked  wool),  mixed  with  new  wool.  Fol- 
lowing the  entrance  of  the  United  States  into  the  war,  the  demand 
for  woolens  of  every  description  was  greatly  increased. 

Due  to  the  needs  of  the  Army,  Navy,  and  Red  Cross  work  for  an 
adequate  supply  of  woolen  clothing  the  United  States  military 
authorities,  working  in  cooperation  with  the  War  Industries  Board, 
commandeered  practically  all  stocks  of  new  wool,  and  also  the  wool 
clip  of  19 18.  This  led  to  a  great  shortage  of  new  wool  for  the  manufac- 
ture of  clothing  for  civilian  use.  To  meet  this  shortage,  much 
greater  recourse  than  usual  had  to  be  made  to  the  use  of  shoddy. 
Shoddy  (or  "reworked  wooF')  is  made  from  used  woolen  rags  and  from 
*'clips,^'  the  tnmmings  and  left-over  scraps  of  new  material,  accumu- 
lated in  tailoring  r.nd  garment-making  establishments.  The  busi- 
ness of  the  woolen-rag  t.'ade  is  the  collection,  sorting,  and  grading 
of  the  rags  and  clips  for  use  in  the  making  of  shoddy. 

As  a  result  of  the  unprecedented  demand  developed  for  woolen 
rags,  the  trade  underwent  a  mushroom  growth.  From  the  best  avail- 
able information  it  appears  that  the  quantity  of  rags  collected  in 
the  United  States  increased  during  1915  and  1916  about  one- third 
over  1914,  and  in  1917  about  half  over  1914.     Even  this  rapid  growth 


REPORT  ON  WOOLEN   RAG  TRADE. 


53 


did  not  keep  pace  with  the  public's  needs,  and  in  1918  the  Government 
placed  an  embargo  on  the  export  of  all  woolen  rags  (including  ''clips"). 
The  prices  of  most  grades  of  woolen  rags  and  ''clips''  increased  during 
this  period  from  300  to  500  per  cent  over  1914  prices. 

Comcident  with  this  rapid  growth  of  the  trade  and  the  price 
increases,  there  developed  many  objectionable  features  in  the  busmess, 
which,  because  of  the  sudden  national  importance  given  the  trade 
through  the  war-time  conditions,  became  a  serious  public  menace. 

The  War  Industries  Board,  through  its  Price-fixing  Committee 
and  its  Woolen  Section,  took  action  to  fix  maximum  prices  and  to 
regulate  to  some  extent  the  character  of  transactions  in  rags  (in- 
cluding ''clips").  It  was  handicapped  to  some  extent  by  the  lack 
of  definite  information  concerning  the  current  conditions  of  a  trade 
which  had  undergone  such  marked  changes  in  so  short  a  time.  The 
Federal  Trade  Commission  was  therefore  called  upon  by  the  War 
Industries  Board  to  make  an  investigation  of  the  situation.  The 
information  gathered  by  this  investigation  appears  in  the  present 
report.  The  Commission  desu-es  herewith  to  pomt  out  certain  general 
conclusions : 

1.  While  the  prices  of  woolen  rags  and  clips  advanced  to  an  unprec- 
edented extent,  it  appears  that  the  larger  dealers  made  a  lower  rate 
of  profit  during  1917  (the  latest  year  for  which  such  information  was 
avadable)  than  in  eariier  years  when  prices  were  materially 
lower.  The  apparent  reason  is  the  much  gi-eater  investment  re- 
quu-ed  to  handle  then-  rags  when  prices  were  high,  and  consequently 
the  smaller  return  on  capital  invested.  The  annual  rate  of ' '  turnover' ' 
(i.  e.,  the  relation  of  receipts  from  sales  to  investment)  dropped 
from  five  times  in  1915  to  three  in  1917.  The  increase  in  prices  went 
chiefly  to  pay  for  the  increased  cost  of  coUection  of  the  rags  before 
they  came  into  the  hands  of  the  sorters  and  graders,  who  prepare 
them  for  shoddy  manufacturers. 

2.  WhHe  the  situation  created  by  the  war  conditions,  which 
made  the  collection  of  all  woolen  rags  and  clips  of  prime  importance, 
no  longer  exists,  yet  it  appears  desirable  that  some  measure  be  taken 
by  the  trade  in  the  line  of  standardization  of  classification  of  its 
product. 


APPENDIX. 


Exhibit  I. 

Correspondence  between  War  Industries  Boari»  and  Boston  Wool  Trade, 
April  27,  1918,  Relating  to  Offer  op  Stocks  of  Wool  to  the  Governmeni. 

[Taken  from  the  Daily  News  Record  April  27, 1918.] 

BOSTON   RESOLUTIONS   SUBMITTED. 

"Robert  H.  Brookings,  War  Industries  Board,  Washington,  D.  C. 

"At  a  meeting  of  the  Boston  wool  trade,  held  on  April  25,  the  following  resolution 
was  unanimously  adopted : 

"Resolved,  On  April  5,  at  the  request  of  the  Government,  Boston  wool  trade  offered 
all  its  unsold  wools  at  market  values,  as  of  that  date.  The  Adew  of  the  War  Industries 
Board,  having  been  presented  to  us,  the  Boston  wool  trade  now  offers  all  its  wool  and 
tops  included  in  the  offering  of  April  5,  and  also  all  foreign  wools  bought  since  that 
date,  not  now  under  Government's  option,  of  December  15,  1917,  as  follows: 

"July  30,  1917,  prices  will  be  the  prices  to  be  paid  by  the  Government  to  wool 
dealers  for  all  wool  costing  dealers  July  30  prices,  or  less.  For  all  wool,  which  can  be 
shown  to  have  cost  dealers  prices  in  excess  of  July  30  i)rices,  the  Government  will  pay 
on  account  of  overhead  and  the  recognized  excess  Aalue  of  spot  wool,  an  amount  of 
5  per  cent  above  cost  on  all  grades,  cost  to  be  composed  of  out  of  pocket  cost,  con- 
sisting of  first  cost,  transportation,  marine  and  war  insurance,  and  interest  at  6  per 
cent.  But  this  total  in  no  case  to  exceed  April  5  prices,  as  per  list  submitted  by  the 
Boston  wool  trade.  This  is  contingent  upon  acceptance  by  all  interested.  It  is 
imderstood,  of  course,  that  this  does  not  apply  to  imported  wool  on  which  the  Goa  ern- 
ment  has  an  option,  as  of  December  15.  Complying  with  your  request,  we  have 
given  no  information  to  the  press.  We  would  appreciate  a  prompt  reply,  so  that  we 
can  give  out  a  report  of  to-day's  meeting. 

Abraham  Koshland, 
President  Boston  Wool  Trade  Association. " 

THE   WAR  INDUSTRIES   BOARD's    REPLY. 

In  reply  to  this  telegram,  the  War  Industries  Board  tx)-day  wired  back,  as  follows: 

"Abraham  Koshland, 

President  Boston  Wool  Trade  Association, 

501  Summer  Street,  Boston,  Mass.,  April  27,  1918. 
"Your  telegram  of  25th  received.  The  Government  greatly  appreciate  the  spirit 
of  patriotism  which  prompted  the  resolutions  offering  your  wool  stock  at  prices  named. 
The  Government  accepts  the  offering  made  in  your  telegram  and  the  necessary  de- 
tails for  taking  over  this  wool  will  be  arranged  by  the  office  of  the  Quartermaster 
General.  Please  telegraph  other  trade  centers  whose  wools  were  offered  to  the  Govern- 
ment, giAdng  them  full  particulars. 

Robert  H.  Brookings, 

Chairm/in,  Price  Fixing  Committee. " 
o4 


^  I 


REPORT  ON  WOOLEN   RAG  TRADE. 
Exhibit  II. 


55 


Announcement  op  War  Industries  Board  in  the  Official  Bulletin,  September 
13,  1918,  ON  THE  Need  to  Conserve  Wool  Cloth. 

need  to  conserve  wool  cloth  is  urged  by  chairman  baruch. 

Bernard  M.  Baruch,  chairman  of  the  War  Industries  Board,  authorizes  the  follow- 
ing: 

While  no  real  shortage  is  to  be  feared  in  the  supply  of  woolen  cloth  or  clothing  this 
winter,  the  country  is  warned  against  a  mistaken  belief  that  there  will  be  a  surplus  of 
free  wool  over  Government  requirements.  Such  a  belief  might  arise  through  a  mis- 
construction of  a  statement  issued  by  Gen.  Wood,  Acting  Quartermaster  General,  in 
summing  up  the  needs  of  the  military  forces  to  July  next.  In  several  instances  this 
was  interpreted  as  meaning  that  the  wool  supply  was  above  the  demand.  That  is 
misleading.  The  statement  referred  to  the  fact  that  no  shortage  of  clothing  need  be 
feared,  because  of  the  large  stocks  of  finished  clothing  and  cloth  now  on  hand. 

WOOLENS    SECTION    STATEMENT. 

The  woolens  section  of  the  War  Industries  Board,  which  has  a  thorough  under- 
standing with  Gen.  Wood,  issued  a  statement  that  there  is  at  the  present  time  no  free 
wool  available  for  civilian  consumption ;  and  renews  its  warning  there  must  be  con- 
servation of  wool  and  of  all  things  made  of  wool  to  prevent  serious  shortage  and  real 
distress  for  a  long  time  to  come.  This  warning  applies  particularly  to  the  use  of 
cloth  and  clothing  now  made  up,  which  will  be  difficult  of  renewal  when  the 
present  stocks  are  exhausted . 

It  is  announced  in  a  statement  issued  to-day  by  Herbert  E.  Peabody,  chief  of  the 
woolens  section  of  the  War  Industries  Board,  after  conferences  with  experts  of  the  wool 
section  and  representatives  of  the  woolen  industry,  that  no  program  for  future  ci\ilian 
consumption  can  be  undertaken  at  this  time.  Wool  must  be  imported  to  meet  Govern- 
ment needs,  and  until  there  have  been  such  importations  and  a  surplus  is  disclosed  no 
plana  can  be  made  for  civilian  needs. 

Following  is  the  announcement  from  the  woolens  section: 

"The  public  statement  of  the  Acting  Quartermaster  General,  in  which  he  has  dis- 
closed the  wool  requirements  for  the  Government  for  the  period  July  1, 1918,  to  July  1, 
1919,  brings  many  inquiries  as  to  what  wool  may  be  available  for  civilian  consumption! 
It  may  now  be  definitely  stated  that  at  present  there  is  no  wool  available  for  civilian 
allocation.  The  Acting  Quartermaster  General  discloses  the  fact  that  a  large  quantity 
of  wool  must  be  imported  to  meet  military  necessities;  and  until  such  importations 
have  been  made  in  amount  to  cover  Government  needs,  program  for  future  civilian 
consumption  can  not  be  undertaken  at  this  time.  However,  in  order  that  the  woolen 
industry  may  have  the  closest  touch  with  the  situation,  and  in  order  that  everyone 
concerned  may  be  assured  that  careful  consideration  is  being  given  the  needs  of  the 
industry  by  men  from  the  industry,  the  Textile  Division  of  the  War  Industries  Board 
has  requested  the  advisory  comittee  of  the  War  Service  Committee  of  the  Wool  Manu- 
facturing Industry— Messrs.  George  B.  Sanford,  Henry  A.  Francis  and  Franklin  W. 
Hobbs— to  act  in  a  similar  capacity  to  the  woolens  section  of  the  War  Industries  Board, 
and  a  meeting  will  be  held  September  25. " 

CONSERVATION   IS   URGED. 

Conservation  of  wool  and  all  of  the  things  made  of  wool  can  not  be  too  strongly  urged, 
and  emphasis  can  not  be  too  often  repeated. 

The  woolens  section  has  already  gone  on  record  that  if  careful  and  intelligent  plan- 
ning in  buying  and  using  articles  of  wool  is  seriously  undertaken  by  the  people  of  this 
country,  they  may  safeguard  themselves  from  real  distress  through  a  wool  shortage  for 
a  long  time  to  come. 


56 


REPOBT  ON  WOOLEN  RAG  TRADE. 
Exhibit  III. 


Announcement  op   the  Wab   Industries   Board   in  the  Official  Bulletin 
November  5, 1918,  in  Refutation  op  Rumors  of  Wool  Allocation  for  Civil- 
ian Needs.   • 

RUMORS   OP  WOOL  allocation   FOR  CIVILIAN   NEEDS   REPUTED. 

B^M.  Baruch,  chairman  of  the  War  Industries  Board,  authorizes  the  following- 

The  woolens  section  of  the  Wax  Industries  Board  feels  that  it  is  desirable  to  refute 

rumors  of  the  allocation  of  wool  for  civilian  needs  in  the  near  future  and  to  make  the 

following  statement: 

The  Quartermaster  General  has  ascertained  his  minimum  requirements  for  the  re- 
mainder of  1918  and  for  the  first  half  of  1919.  The  Shipping  Board  has  carefully  esti- 
mated Its  abihty  to  provide  tonnage  for  taking  care  of  the  Quartermaster  General's 
prograin  ^thout  interfering  with  the  movement  of  troops  and  supplies.  Due  consider- 
ation has  been  given  to  the  present  stocks  of  wool  in  the  hands  of  the  Quartermaster 
Jxeneral  to  the  desirabiUty  of  not  permitting  unduly  large  reserves  of  wool  to  accumu- 
late in  Army  hands  at  the  expense  of  civilian  needs;  and  full  weight  has  been  given  to 
every  other  factor  that  could  have  bearing  on  the  situation.  All  figures  obtainable 
have  been  carefully  weighed  in  the  light  of  the  available  knowledge  of  the  military 
and  shipping  situation.  The  woolens  section  would  gladly  make  public  all  of  the 
figures  and  facts  in  its  hands  if  it  were  not  so  clearly  against  wise  military  policy 

will  LEAVE   SMALL  SURPLUS. 

After  thus  considering  every  pertinent  fact  and  reasonable  probability,  the  woolens 
section  IS  obUged  to  conclude  that  stocks  of  wool  in  the  possession  of  the  quartermaster 
after  the  immediate  needs  of  the  Government  have  been  provided  for  will  leave  a  sur- 
plus so  small  as  to  precludeany  allocation  for  civilian  purposes  in  the  immediate  future 
Additional  suppUes  of  wool  for  the  Army  and  for  civilian  purposes  are  entirely  depend- 
ent upon  future  importations  until  the  domestic  clip  of  1919  is  available  for  use 
This  situation  makes  it  clear  that  no  allotments  of  wool  for  civilian  purposes  can  be 
considered  for  sometime  to  come.  Having  reached  this  conclusion  on  evidence  it 
must  accept,  the  section  considers  it  to  be  its  duty  to  make  pubHc  a  definite  announce- 
ment  of  this  fact. 

This  announcement  is  made  for  the  purpose  of  removing  uncertainty  from  the 
situation  for  the  next  few  months.  The  industry  may  rest  assured  that  allotmente  for 
civihan  use  will  be  made  as  soon  as  this  can  be  done  without  impairing  miUtarv 
operation.  ^  ^^     ^ 

Requests  from  different  sources  that  sufficient  wool  should  be  apportioned  to  manu- 
facturers to  enable  them  to  keep  their  organizations  together  and  to  continue  in  oper- 
ation are  impossible  to  meet.  But  the  Quartermastf^r  General,  having  the  seriousness 
confrontmg  manufacturers  in  mind,  has  advanced  his  buying  program  and  has  offered 
his  needs  for  bids  covering  the  first  quarter  of  1919,  in  so  far  as  his  stocks  of  wool  will 
permit.  The  action  of  the  Quartermaster  General  provides  regular  employment  for 
m^hmery  in  volume  only  slightly  reduced  from  the  deliveries  now  being  made  to 

With  the  stock  of  wool  now  actually  on  hand  and  free  against  new  contracts  and  the 
uncertamties  that  surround  importations,  the  Quartermaster  General  is  compelled  to 
conserve  every  pound  of  wool.  The  woolens  section  beUeves  that  in  advancing  his 
program  the  Quartermaster  General  has  provided  the  only  relief  for  the  industry  which 
may  be  found  at  present.  ^ 


r-^ 


REPORT  ON  WOOLEN  RAG  TRADE. 
Exhibit  IV. 


57 


Order  op  Railroad  Administration,  in  Oppicial  Bulletin,  August  19,  1918, 
Directing  Prompt  Movement  op  Woolen  Rags  and  Shoddy. 

prompt  movement  asked  op  woolen  rags  and  shoddy. 

[Supplement  No.  1  to  Circular  No.  CS  lO.J 

Washington,  August  15,  1918. 
To  railroads: 

The  shortage  of  wool  makes  necessary  the  increased  use  of  substitutes  for  wool  such 
as  woolen  rags  and  shoddy.  ' 

As  far  as  practicable,  shipments  of  woolen  rags  and  shoddy  should  be  accepted  and 
moved  promptly  on  a  parity  with  wool. 

The  freight  traffic  committee,  North  Atlantic  Ports,  is  prepared  to  issue  permits 
promptly  on  any  such  shipments  destined  to  New  York,  Philadelphia,  and  Baltimore. 

W.  C.  Kendall, 
Manager  Car  Service  Section. 


Exhibit  V. 

Order  Issued  July  12,  1918,  by  Woolen  Rag  and  Fiber  Administrator  of  War 
Industries  Board,  Fixing  Maximum  Prices  on  Woolen  Rags,  and  Requiring 
Certain  Reports. 

T  ,  .  ^    ,  July  12,  1918. 

in  accordance  with  the  authority  given  me  by  the  War  Industries  Board,  through 
H.  E.  Peabody,  chief  of  woolens  section,  it  is  my  intention  to  fix  and  enforce  maxi- 
mum prices  on  rags  entering  into  the  manufacture  of  woolen  fabrics.  With  the  desire 
to  protect  all  business  interests  which  may  be  affected,  the  announcement  of  maxi- 
mum prices  will  be  delayed. 

Pending  such  announcement,  I  hereby  notify  each  rag  grader  and  producer  (or  re- 
tailer) of  rags  to  at  once  mail  to  me  at  334  Fourth  Avenue,  New  York  City,  a  record  of 
all  sales  of  woolen  rags  made  by  him  during  the  week  ending  at  noon  Satiu-day,  July 
13,  1918.  Such  statement  to  include  the  names  of  the  purchasers,  the  quantity  of 
each  grade  and  the  price  at  which  each  was  sold. 

Dealers  wiU  also  report  to  me  the  stock  of  all  grades  of  rags  which  enter  into  the 
manufacture  of  woolen  fabrics,  which  they  have  on  hand  at  noon  July  13,  and  wiU 
forward  me  weekly  a  report  of  unsold  stock  on  hand  Saturday  noon  of  each  week, 
together  with  a  record  of  all  purchases  and  sales  during  the  week. 

I  also  direct  that  until  further  notice  no  dealer  make  any  sales  of  rags  at  prices  in 
excess  of  those  quoted  to  the  last  issue  of  the  recognized  waste  trade  publications  pre- 
vious to  July  8,  1918. 

I  shall  proceed  on  the  assumption  that  all  dealers  are  acting  in  good  faith  to  recog- 
nize the  desirabiUty  of  patriotic  cooperation;  but  should  evidence  of  lack  of  feith  be 
brought  to  my  attention,  I  shall  exercise  the  power  which  has  been  delegated  me. 

Herbert  E.  Peabody, 
Chief  of  Woolens  Section,  War  Industries  Board. 
By  A.  L.  GiPPORD, 
Woolen  Rag  and  Fiber  Administrator, 


58 


REPORT  ON   WOOLEN  RAG  TRADE. 


Exhibit  VI. 
Order  of  Price  Fixing  Committee  op  War  Industries  Board,  August  19   1918 

Fixing  Maximum  Prices  ON  Woolen  Rags.  '         ' 

m.        •     n   .  August  19,  1918. 

The  price  fixing  committee  of  the  War  Industries  Board  has  fixed  the  following  maxi- 
mum prices  upon  various  grades  of  rags  which  is  effective  on  all  sales  made  from  Au- 
gust  19,  and  remaining  in  effect  until  October  1, 1918,  and  thereafter,  pending  the  com- 
pilation of  data  which  is  to  be  furnished  by  the  Federal  Trade  Commission  These 
prices  are  net  f .  o.b  shipping  point  and  are  to  apply  to  sales  made  both  to  the  Govern- 
ment  and  to  the  pub  he. 

Herbert  E.  Peabody, 
Chief  of  Woolens  Section,  War  Industries  Board. 
By  A.  L.  Gipford, 
Woolen  Hag  and  Fiber  Administrator. 


Softs: 

Mixed  softs 


Cents 
per  lb. 

2H 

Blue  seizes 25 

Brown  serges 32 

Green  serges 32 

Red  serges 28 

Black  serges 22 

White  softs 52 

White  flannels  and  serges 50 

White  knits 55 

Red  knits 2Th 

Blue  knits,  mixed 26^ 

Silver  gray  knits 45' 

Brown  knits 32 

Fancy  knits 2I 

Black  dressed  knits 30 

Light  hoods 33 

Light  grey  underwear I6 

Fine  light  merinos 32 

Fine  dark  merinos 25 

Coarse  dark  merinos  with  serges.  16 

Coarse  light  merinos  with  serges.  24 

Tbibets 28^ 

Wool  bodies 33 

Wool  carpets jqi 


Softs— continued.  ^^^ 

Soft  back  carpets 41 

Mixed  linseys 41 

Cloth:  ^ 

Rough  cloth ga 

Skirted  cloth,  ripped  from  rough 

cloth 11^ 

Skirted  cloth,  sorted  from  mixed 

rags 10 

Skirted  delaines •. gi 

Light  skirted  cloth 15^ 

Black  and  whites 17 

Fine  light  skirted  cloth 18^ 

Brown  skirted 10 

Dark  skirted 8^ 

Black  skirted 10 

Blue  skirted 10 

Tan  skirted 25 

Light  skirted-  worsteds 25 

Blue  worsteds 2I 

Black  worsteds 22 

Brown  worsteds 23 

Dark  worsteds 17 

White  linsey  flannels 7 


Exhibit  VII. 
Order  op  Price  Fixing  Commiitee  of  War  Industries  Board,  August  21  191 ; 

Fixing  Maximum  Prices  on  Woolen  Clips. 

mi,„ :      fl   -  .  August  21,  1918. 

The  pnce  fixing  committee  of  the  War  Industries  Board  has  fixed  the  following 
pnces  upon  the  new  woolen  clips  and  also  prices  for  men's  weax  and  women's  weaf 
new  chps,  which  are  to  be  paid  by  the  ntg  collector  to  the  cutter-up,  effective  on  al 
s^es  made  from  August  22,  and  remaining  in  effect  until  October  1  1918  and  there- 
after pending  the  compilation  of  data  which  is  to  be  furnished  by  the  Federal  Tmd^ 
Commission.  These  prices  are  net  f.  o.  b.  shipping  point  and  are  Led  on  Mgh  stand! 
ard  of  gracing  and  should  not  be  paid  for  inferior  packing,  and  are  to  apply  to  sa  es 
made  both  to  the  Government  and  to  the  public.    "^         ^'  '^  ^^^'^  ^"^  '^^^^ 

Herbert  E.  Peabody, 
Chief  of  Woolens  Section,  War  Industries  Board, 
By  A.  L.  GiPPORD, 
Woolen  Rag  and  Fiber  Administrator, 


REPORT  ON  WOOLBK  RAG  TRADE. 


59 


V   r  • 


'II 


Men's  wear:                                        p^°,g 
Men's  black  and  blue  worsteds. .    48 
Fine  clothing  house  clips,  light- 
weight     39 

Fine  merchant  tailor  clips 38 

Medium    clothing  house    clips, 

lightweight 37 

Ordinary  clothing   house  clips, 
including  cotton  warps......    22 

All-wool  overcoatings 23 

Medium  overcoatings,  free  from 

cotton  warps 20 

All-wool  mackinaws 17 

Mixed    overcoatings,    including 

cotton  warps 10 

Cotton- warp  clothing  clips 5 

All-wool  flannels 25 

Women's  wear: 

Fine  cloak  and  suit  house  light- 
weight mixed  clips,  including 

serges 33 

Fine  cloak  and  suit  house  light- 
weight mixed  clips,   without 

serges 25 

All-wool  mixed  serges 40 

All-wool  cloakings 20 

Cotton- warp  serges 8 

Cotton- warp  cloak  and  suit  clips .      5 
Graded  clips: 

Black  worsteds 65 

Blue  worsteds 62 

Blue  worsted  edges 50 

Brown  worsteds 57 

Black  and  white  worsted 56 

Light  worsteds 54 

Fine  light  worsted  and  clips. . .    50 

Fine  lights 45 

Fine  dark  worsteds 48 

Fine  dark  worsted  and  clips 47 

Fine  mixed  clips 44 

Mixed  dark  clips 40 

Mixed  clips 35 


Graded  clips— Continued.  ^r^'lb. 

Medium  mixed  clips 32 

Heavyweight  clips 28 

Coarse  dark  clips 23 

Coarse  light  clips 25 

Ordinary  light  clips 20 

Black  and  white 30 

Dark  grey  oxford 26 

Plain  black  clips 26 

Blue     uniform     clips,     without 

edges 38 

Fancy  mackinaws 20 

LTnion ._  _  3 

Light  unions n 

Light  blue  serge 52 

Black  serges 50 

Blue  serges 50 

Brown  serges 50 

Green  serges 50 

Red  serges 50 

Tan  serges 60 

Black  and  blue  serge  edges 35 

Dark  serges 35 

Light  serges 45 

White  serges 70 

Blue  cheviot 28 

Red  cheviot 28 

Brown  cheviot 28 

Green  che\dot 28 

Black  cheviot 28 

Light  blue  cheviot 28 

Tan  cheviot 35 

Light  homespun 35 

Medium  homespun 30 

Ordinary  homespun 25 

Light  flannels 35 

Blue  flannels 35 

Red  flannels 35 

Green  flannels 35 

French  flannels 27 

Mixed  flannels 25 

Black  flannels 33 


Exhibit  VIII. 

Order  of  Price  Fixing  Committee  of  War  Industries  Board,  August  22,  1918, 
Fixing  Maximum  Prices  on  "  Reworked  Wool  or  Fiber  "  (Shoddy).  ' 

rn.         .      ^  .  .  August  22,  1918. 

The  pnce  fixing  conunittee  of  the  War  Industries  Board  ha^  fixed  the  following 
prices  on  reworked  wool  or  fiber,  on  sales  made  from  August  22,  1918  to  remain  in 
effect  until  October  1, 1918,  and  thereafter,  pending  the  compilation  of  data  which  is 
to  be  furmshed  by  the  Federal  Trade  Commission.  These  prices  are  net  f.  o  b  ship- 
ping point  and  are  to  apply  to  sales  made  both  to  the  Government  and  to  the  public. 

Herbert  E.  Peabody, 
Chief  of  Woolen  Section,  War  Industries  Board. 

By  A.  L.  Gipford, 

Woolen  Rag  and  Fiber  Administrator. 


60 


JUEPORT  ON  WOOLEN  RAG  TRADE. 


These  prices  are  to  remain  in  effect  until  October  1.  1918,  and  thereafter,  pending 
the  compilation  of  data  which  are  to  be  furnished  by  the  Federal  Trade  Commijieion. 
These  prices  are  net  f.  o.  b.  selling  point  and  are  to  apply  to  sales  both  to  the  Govern- 
ment and  to  the  public.  These  prices  include  carbonizing,  picking  and  carding. 
If  dyeing  is  added,  the  charge  for  same  must  not  exceed  5  cents  for  black  or  O.  D. 
(khaki)  without  special  permit  from  the  fiber  administrator. 


Cents. 

Blue  serge 48^ 

Brown  serge 58 

Green  serge 58 

Red  serge 55 

Black  serge 44^ 

Whi  te  softs 86 

White  flannels  and  serges 83 

White  knits 92 

Red  knits 59 

Blue  knits,  mixed 57 

Silver  grey  knits 93 

Brown  knits 66 

Fancy  knits 48^ 

Black  dressed  knits 63 

Light  hoods 76 

Light  grey  underwear 50 

Fine  light  merinos 58^ 

Fine  dark  merinos 48 

Coarse  dark  merinos,  with  serge 38 


Cents. 

Coarse  light  merinos,  with  serge 50 

Thibets 50 J 

Light  skirted  cloth 39 

Black  and  white 42 

Fine  light  skirted  cloth 44  J 

Brown  cloth 29 

Dark  cloth 27 

Black  cloth 29 

Blue  cloth ,  29 

Tan  skirted 48 

Light  worsteds 48^ 

Blue  worsteds 43 

Black  worsteds 44^ 

Brown  worsteds 46 

Dark  worsteds 39 

Wool  carpets 30 

Soft  back  carpets 33^ 

Skirted  delaines 36 


Exhibit  IX. 

Published  Price  Quotations  on  Woolen  Rags  and  Clips,  1904-1911. 

Price  quotations  on  old  sTcirted  cloth,  soft  woolen  rags,  and  new  tailor  clips  in  the  United 

States,  ^  January,  1904  to  December  7,  1911. 

[Cents  per  pound.] 


Old  stock: 

Skirted  cloth ,  mixed 

Light  skirted  cloth 

Fine  light  skirted  cloth 

Blue  skirted  cloth 

Brown  skirted  cloth 

Black  skirted  cloth 

Dark  skirted  cloth 

Black  skirted  worsted 

Blue  skirted  worsted 

Dark  skirted  worsted 

Soft  woolen  No.  1 

Soft  old  red  flannels 

Soft  old  blue  flannels 

Soft  old  white  flannels 

New  stock: 

Mixed  French  flannels 

Fine  merchant   tailors,   all 
colors 

New  brown  cheviots 

New  scarlet  flannels 

New  black  flannels 

Light  cadet  clips 

Army  blue  clips,  pure  indigo. 


1904 


6 

6i 

6 

4i 

4i 


o 


4J 
9 

11 

8 

20 


10 
12 
20 
15 
15 
23 


4| 

4i 

4 

4 


1905         1906 


w 


6 

6 
5 

4i 


f 

51 

f 

6 
18 


7 

11* 
19 

14 
14 
20 


5 
11 

1? 
12i 
8J 
20 


11 
12 
20 
15 
15 


o 


55 

5J 

5 

4 

4 


4 

8^ 
5| 
6 

8i 
10 

7 
18 


8 

llj 
19 
14 
14 


xi 

w 


6 

5i 
4i 


if 
9i 
8i 

lOi 

13^ 

10 

20 


23     20 


12 
12 
20 
16 
15 
23 


o 


5 
5 
5 

4i 
4 


1907 


1908 


1909 


Xi 

3 


3 
10 

8 
6i 
9 
12 

n 

18 


9 

Hi 

19 
14 
14 
20 


5 
5 
8 
5i 
4i 
5 
4 
lOJ 

8i 

8i 
9f 

13i 
9 

20 


12 
12 
20 
16 
15 
23 


4 
4 
7 
4 
4 

f 

8i 

8 

7 

8 


4i 
5J 
8 
5 

ij 

3 

9 

8 

8? 

8 


12     12i 

8       9 

18     20 


11  12 
Hi   12 

19  ,20 
14  15 
14     15 

20  ,23 


o 


4 

3i 
7 

3i 
4 
4 
2i 
5J 
5i 
5 
5 
10 
6 


I 


4i 
5i 

^ 

4i 

4i 

4 

3 

7 

6J 
6 
61 
12 

7i 


14     16i 


10 

Hi 

13 
10 
14 
20 


Hi 

12 

15 

12 

18i 

22 


o 
1-^ 


4 
7 
3 
4 

3i 
1* 
5i 
4i 
4i 
5 
9i 
6 
13 


1910 


3i     4i 


5 

Si 
3 
4i 
2i 

f 

5 
5 
6i 

'\' 
161 


Hi 

5 

8 

13i 
14 


8i 
12 
18 
10 
18) 
18 


21 

3 

6 

2\ 

2 

2 

li 
5i 
4 
3 
4 
9i 
4 
15 


1911 


7 

Hi 

5 

6 
16 
16 


2| 

4 

6 

3 

3 

2J 

6*' 
4i 
3i 

5i 
10 

6 
18 

12 

8 
12 
18 

8i 
18i 
18 


o 


f 

5 

21 
2 
2 
U 
4i 
3i 
2i 
4i 
7i 
4 
15 

lOi 

5 

17 

6 

16 

16 


REPORT  ON  WOOLEN  RAG  TRADE. 
Exhibit  X. 


61 


Published  Price  Quotations  on  Woolen^Raqs  and  Clips,  January,  1913-April. 

A.  USED  MATERIALS. 

Prices  on  Rags,  Woolen,  ''Rough  cloth,'* 
(Market:  Ne.yo*.    Source:  Waste  Trade  Jo^^a..^J,^ai.:P„u„a,    Quotation:  Firs.  Thursday  o.each 

ACTUAL  PRICES. 


January 

February [" 

March 

MSy':;;;;;:;;:;:;-"-' 

June 

July :....l"l]]['. 

August ['/ 

September " " 

October *]] 

No  v^ember '.'.'.'.'.'.'. 

Decem  ber '.'.'.'.'." 

Quarters: 

First 

Second 

Third 

Fourth ." 

Year 


1913 


to.  0168 
.0180 
.0188 
.0175 
.0155 
.0150 
.0150 
.0153 
.0150 
.0150 
.0160 
.0165 

.0179 
.0160 
.0150 
.0158 
.0162 


1914 


SO.  0160 
.0165 
.0185 
.0190 
.0180 
.0140 
.0150 
.0145 
.0173 
.0200 
.0350 
.0238 

.0170 
.0170 
.0156 
.0263 
.0190 


1915 


10.0375 
.0450 
.0375 
.0300 
.0288 
.0288 
.0425 
.0425 
.0550 
.0550 
.0661 
.0631 

.0400 
.0292 
.0467 
.0614 
.0443 


1916 


$0.0863 
.0925 
.0875 
.0575 
.0563 
.0694 
.0563 
.0475 
.0488 
.0519 
.0694 
.0625 

.0888 
.0611 
.0509 
.0613 
.0655 


1917 


$0.0563 
.0463 
.0500 
.0388 
.0513 
.0588 
.0538 
.0538 
.0538 
.0525 
.0538 
.0538 

.0509 
.0496 
.0538 
.0534 
.0519 


RELATIVE  PRICES. 
[Average  actual  price  July  l,  1913,  to  June  30, 1914,  =  $0.0162  =  lOO.J 


January 
February 
March 
April 

May 

June 

July 

August 

September 

October 

November 

December 

Quarters: 
First 
Second 
Third 
Fourth 

Year 


231 

533 

278 

571 

231 

540 

185 

355 

178 

348 

178 

428 

262 

348 

262 

293 

340 

301 

340 

320 

408 

428 

390 

386 

548 
377 
314 
378 
404 


191S 


1919 


$0.0550        $0.0575 
.0538  .0700 

.0550  .0750 

.0588  :  .0775 

.0775  

.0725  ■* 

.0850  

.0900  

.0875  .'.* 

.0S75  

.0875  ' 

.0587  

.0546  .0675 

.0696  

.0875  ■ 

.0779  ** 

.0724  


=  lOO.J 

348 
286 
309 
240 
317 

340 
332 
340 
363 
478 
448 
525 
556 
540 
540 
540 
362 

337 

430 
540 
480 
446 

354 
432 
460 
478 

363 

332 

332 

332 

324 

332 

332 

314 
306 

416 

332 

330 

320 

>  From  the  American  Wool  and  Cotton  Reporter. 


62 


REPORT  ON   WOOLEN  RAG  TRADE. 


Published  Price  Quotations  on  Woolen  Rags  and  Clips,  January,  i9]3-ApRiL, 

1919— Continued. 

A.  USED  material— Continued. 

Prices  on  Rags,  Woolen,  ''Light  cloth:' 

^^^n'^^p^t^'n^iSr^rV  ^'""■''^-  ^^^l^tions  for  years  1913-1918,  inohisive,  are  taken  from  the  American  Wool 
Qu1>t^a?[rFS'SoreiL^^^^^^^^  °'  ''''  '^'^  the  Waste  Trade  Joumai.    Unit:  Pound"* 

ACTUAL  PRICES. 


January 

February... 

March . .' 

April 

May 

June 

July 

August 

September.. 

October 

November. . . 
December.... 
Quarters: 

First.... 

Second.. 

Third... 

Fourth.. 
Year 


1913 


$0.(M50 
.0450 
.0450 
.0435 
.0425 
.0425 
.0425 
.0412 
.0262 
.0287 
.0287 
.0287 

.0450 
.0428 
.0366 
.0287 
.0383 


1914 


$0.0275 
.0287 
.0337 
.0337 
.0387 
.0325 
.0362 
.0362 
.0262 
.0312 
.0512 
.0512 

.0283 
.0349 
.0328 
.0445 
.0351 


1915 


$0.0625 
.0650 
.0725 
.06S7 
.0525 
.0525 
.0600 
.0600 
.0862 
.0900 
.0912 
.0912 

.0667 
.0579 
.0687 
.0908 
.0735 


1916 


$0.1050 
.1175 
.1137 
.1125 
.1025 
.1025 
.0950 
.0862 
.0862 
.0862 
.0862 
.0950 

.1121 
.1058 
.0891 
.0891 
.0990 


1917 


$0.0900 
.08,50 
.0750 
.0675 
.0676 
.0950 
.0950 
.0950 
.0950 
.0850 
.0850 
.0950 

.0833 
.0767 
.0950 
.0883 
.0856 


RELATIVE  PRICES. 
[Average  actual  price  July  1, 1913,  to  June  30, 1914 =$0.0326=  100.] 


January . . . 
February., 

March 

April 

May 

Jirne 

July 

August 

September 
Octcbpr... 
November. 
December. 
Quarters: 

First.. 

Second 

Third. 

Fourth 
Year 


149 

147 

147 

142 

139 

139 

139 

135 

86 

94 

94 

94 

147 
140 
120 
94 
125 


90 
94 
110 
110 
127 
106 
118 
118 
86 
102 
168 
168 

93 
114 
107 
146 
115 


204 
213 
238 
226 
17a 
172 
196 
196 
282 
295 
299 
299 

219 
190 
226 
297 
241 


344 

385 

372, 

368 

335 

335 

311 

282 

282 

282 

282 

311 

362 
346 
292 
292 
324 


295 
278 
246 
221 
221 
311 
311 
311 
311 
278 
278 
311 

273 
251 
311 
289 
281 


1918 


1919 


10.0950 
.0950 
.0750 
.0850 
.1100 
.1100 
.1312 
.1312 
.1312 
.1312 
.1525 
.1525 


$0.1100 
.1100 
.1106 
.1100 


.0817 
.1017 
.  1312 
.1454 
.1150 


.1100 


311 
311 
246 

278 
360 

300 
360 
360 
360 

360 

426 

426 

426 

426 

499 

499 

267 
332 

seo 

430 

485 

376 

^ 


REPORT  ON   WOOLEN  RAG  TRADE. 


63 


Published  Price  Quotation  on  Woolen  Rags  and-Clips,  January,  1913-April. 

1919 — Continued. 

A.  USED  MATERIALS-Continued. 

Prices  on  Rags,  Woolen,  ''Skirted  delaines:' 

(Market:  New  York.    Source:  Waste  ^-dejournal^^  Un^^^^  Quotation:  First  Thursday  of  each 

ACTUAL  PRICES. 


January 

February 

March 

April 

May 

June 

Jiily 

August 

September 

October 

November 

December 

Quarters: 

First 

Second 

Third 

Fourth 

Year 


$0.0200 
.0200 
.0213 
.0213 
.0213 
.0213 
0213 
.0175 
.0175 
.0175 
.0213 
.0200 

.0204 
.0213 
.0188 
.0196 
.0200 


1915 


$0.0135 
.0135 
.0223 
.0223 
.0223 
.0150 
.0150 
.0150 
.0190 
.0190 
.0245 
0245 

.0164 
.0199 
.0163 
.0227 
.0188 


$0.0263 
.0338 
.0325 
.0275 
.0275 
.0275 
.0313 
.0288 
.0325 
.0325 
.0350 
.0375 

.0309 
.0275 
.0309 
.0350 
.0311 


1916 


$0.0450 
.0450 
.0619 
.0475 
.0450 
.0525 
.0525 
.0438 
.0438 
.0400 
.0475 
.0475 

.0506 
.0483 
.0467 
.0450 
.0477 


1917 


$0.0425 
,0413 
.0413 
.0375 
.0406 
.0406 
.0406 
.0406 
.0406 
.0406 
.0406 
.0413 

.0417 
.0396 
.040«j 
.0408 
.0407 


RELATIVE  PRICES. 
[Average  actual  price  July  1, 1913,  to  June  30, 1914=$0.0187=100.] 


January... 
February . . 

March 

April 

May 

June 

July 

August 

September. 

October... 

November. 

December., 

Quarters: 

First... 

Second. 

Third.. 

Fourth. 
Year 


107 

107 

114 

114 

114 

114 

114 

94 

94 

94 

114 

107 

109 
114 
101 
105 
107 


72 

72 

119 

119 

119 

80 

80 

80 

102 

102 

131 

131 

88 
106 

87 
121 
101 


141 

181 
174 
147 
147 
147 
167 
154 
174 
174 
187 
201 

165 
147 
165 
187 
166 


241 
241 
331 
254 
241 
281 
281 
234 
234 
214 
254 
254 

271 

258 
250 
241 
255 


227 
221 
221 
201 
217 
217 
217 
217 
217 
217 
217 
221 

223 
212 
217 
218 
218 


1918 


1919 


$0.0575 
.0525 
.0475 
.0475 


$0.0413 
.0413 
.0413 
.0413 
.0438 

.W3.S  

.0475  

•052.')  

•0650  

•0650  1 

.0650  

.0650  1 

j 

.0413  '    .0525 

.0430  

.0550  ! " 

.0650  ' 

.0510  I ". 


221  307 

221  280 

221  254 

221  254 

234  

234  

254  

281  

347  

347  

347  

347  

221  2^0 

230  

294  

347  

272  


64 


REPORT  OlSr  WOOLEN  RAG  TRADE. 


REPORT  ON  WOOLEN  RAG  TRADE. 


65 


Published  Price  Quotations  on  Woolen  Rags  and  Clips,  Januaby,  1913-April, 

1919— Continued. 

A.  USED  MATERIALS— Continued. 

Prices  on  RagSj  Woolen^  "Light  worsteds." 

[  Market:  New  York.  Source:  Quotations  for  years  1913-1918,  inclusive,  are  taken  from  the  American  Wool 
and  Cotton  Reporter;  and  for  the  four  months  of  1919  from  the  Waste  Trade  Journal.  Unit:  Pound. 
Quotation:  First  week  of  each  month,  1913-1919.] 

ACTUAL  PRICES. 


4 

1913 

1914 

1915 

1916 

1917 

1918 

1919 

JftTiiiary ,   , 

$0.0925 
.1176 
.1250 
.1200 
.0950 
.0950 
.1050 
.1150 
.1150 
.1150 
.1600 
.1600 

.1117 
.1033 
.1113 
.1460 
.1178 

$0.1600 
.1800 
.1750 
.1600 
.1500 
.1425 
.1400 
.1325 
.1250 
.1250 
.1325 
.1325 

.1717 
.1508 
.1325 
.1300 
.1462 

$0.1325 
.1350 
.1350 
.1325 
.1250 
.1550 
.1550 
.1500 
.1350 
.13.50 
.1500 
.1500 

.1342 

.1375 
.1467 
.1450 
.1409 

$0.1500 
.1500 
.1500 
.1600 
.2250 
.2250 
.2250 
.2250 
.2250 
.2250 
.2500 
.2500 

.1500 
.1700 
.2250 
.2414 
.1967 

$0.1H50 

Febniary 

$0.0587 
.0587 
.0587 
.0587 
.0587 
.0525 
.0525 
.0550 
.0650 
.0850 
.0812 

.0587 
.0587 
.0533 
.0770 
.0619 

.1850 

March..' 

.1860 

April 

May 

June 

July 

August 

.1850 

September 

October 

November 

December 

Quarters: 

First 

Second. 

.1850 

Third 

Fourth 

Year 

RELATIVE  PRICES. 
[Averse  actual  price  Feb.  1  to  Jime  30, 1914=$0.0587=100.] 


January 

February. , . 

March 

April 

May 

June 

July 

August 

September., 

October 

November. . 
December . . 
Quarters: 

First... 

Second. 

Third... 

Fourth. 
Year 


100 

100 

100 

100 

100 

89 

80 

93 

111 

145 

138 

100 
100 
91 
131 
105 


168 
200 
213 
204 

;s 

178 
195 
196 
196 
272 
272 

198 
176 
18d 
246 
200 


272 

225 

25fl 

306 

230 

255 

298 

230 

255 

272 

225 

272 

255 

213 

382 

242 

264 

382 

238 

264 

38) 

225 

255 

382 

213 

230 

38) 

213 

230 

38) 

225 

255 

42S 

225 

255 

425 

242 

228 

225 

256 

234 

289 

225 

249 

38) 

221 

246 

410 

249 

240 

334 

815 
315 
315 
815 


315 


Published  Price  Quotations  on  Woolen  Rags  and  Clips.  January.  1913-April 

1919-Contmued.  '   ^^o-a^ku., 

A.   USED  MATERIALS-Contlnued. 

Prices  on  Rags,  Woolen,  "Best  mixed  softs,** 

[Market:  New  York.    Source:  Waste  TradeJoumal.    Unit:  Pound.    Quotation:  First  Thursday  of  each 

ACTUAL  PRICES. 


January 

February. . , 

March 

April 

May 

June 

July 

August 

September.. 

October 

November. . 
December.. 
Quarters: 

First... 

Second. 

Third.. 

Fourth. 
Year 


January 

February, 

March 

April 

May 

June. 

July 

August 

September 

October 

November 

December 

Quarters: 
First 
Second 
Third 
Fourth 

Year 


1913 


SO.  0663 
.0631 
.0650 
.0650 
.0513 
.0500 
.0500 
.0525 
.0518 
.0518 
.0538 
.0538 

.0665 
.0554 
.0514 
.0531 
.0566 


1914 


$0.0538 
.0550 
.0575 
.0576 
.0550 
.0488 
.0463 
.0450 
.0569 
.0600 
.0738 
.0625 

.0554 
0538 
.0494 
.0654 
.p660 


1015 


$0.0763 
.0088 
.0850 
.0738 
.0788 
.0788 
.1025 
.0925 
.1113 
.1125 
.1275 
.1250 

.0867 
.0771 
.1021 
.  1217 
.0960 


1916 


$0.1538 
.1650 
.1675 
.1163 
.1163 
.1363 
.1263 
.1075 
.1088 
.1175 
.1413 
.1360 

.1621 
.1230 
.1142 
.1313 
.1326 


1917 


1918 


1919 


$0.1325 

$0.1400 

.1125 

.1400 

.1250 

.1400 

.1075 

.1575 

.1300 

1875 

.1425 

.1775 

.1325 

.2100 

.1350 

.2200 

.1350 

.2150 

.1350 

.2150 

.1375 

.2150 

.1388 

.1587 

.1233 

.1400 

.1267 

.1742 

.1342 

.2150 

.1371 

.1962 

.1303 

.1814 

$0. 1575 
.1700 
.1750 
.1775 


.1675 


RELATIVE  PRICES. 
[Average  actual  price  July  1, 1913,  to  June  30. 1914,  -  $0,534  -  lOO.J 


288 
309 
314 
218 
218 
255 
237 
201 
204 
220 
265 
253 

304 
230 
214 
246 
248 


248 
211 
234 
201 
243 
267 
248 
253 
253 
253 
258 
260 

231 
237 
251 
257 
244 


262 
262 
262 
295 
351 
332 
393 
412 
403 
403 
403 
297 

262 
326 
403 
367 
337 


294 
318 
327 
332 


141957—20 5 


818 


k 


J  ' 


66 


BEFOBT  ON  WOOLEN  BAG  TRADE. 


REPORT  ON  WOOLEN  RAG  TRADE. 


67 


p^XSH..  PBICK  Q^OTATXCKS  OK  W^^  R^-^  O.XPB,  J.......  mS-APHX., 

A.  USED  MATBBIAL8— Continued. 
Prioei  <m  RagSy  Woolen,  "Blue  urges." 

Po^dT  Quotation:  Krst  week  of  each  month,  1913-1919.1 

ACTUAL  PRICES. 


January 

February 

M&rch«  ....•••••• 

Aprila  ...•••••••• 

July  .••••••••••• • 

June ■" 

July 

August 

September 

October 

Kovember .< 

December 

Qutffters: 

First. ...... 

Second 

Third 

Fourth 

Year 


1913 


1914 


10.0500 
.0600 
.0600 
.0600 
.0600 
.0600 
.0600 
.0600 
.0600 
.0512 
.0512 
.0512 

.0567 
.0600 
.0600 
.0512 
.0570 


1916 


1916 


SO.  0512 
.0562 
.0562 

.0600 
.0600 
.0550 
.0550 
.0562 
.0562 
.0887 
.0887 

.0545 
.0600 
.0554 
.0778 
.0619 


SO.  0926 
.1450 
.15S0 
.1600 
.1150 
.1150 
.1250 
.1250 
.1550 
.1550 
.1550 
.1560 

.1306 
.1267 
.1350 
.1560 
.1360 


1917 


1918 


SO.  1650 
.1950 
.1950 
.1550 
.1500 
.1550 
.1550 
.1275 
.1250 
.1350 
.1600 
.1850 

.1860 
.1633 
.1358 
.1600 
.1585 


SO. 


850 

650 

560 

450 

450 

650 

650 

600 

400 

450 

5S0 

650 

683 
517 
560 
550 
575 


1919 


i 


0 


so. 1650 
.1650 
.1600  I 
.1650  I 
.2050 
.2050 
.2150 
.2150 
.2150 
.2150 
.2500 
.2500 

.1639 
.1917 
.2160 
.2389 
.2021 


S0.18SD 
.1860 
.1960 
.1910 


.1900 


RELATIVE  PRICES. 
(Average  actual  price  July  1. 1913,  to  June  80, 1914  -  S0.0561  - 100.1 


January 

February — 

March 

AprU 

Hay 

June. ■ 

July 

August 

September.. 

October 

Novembtf.. 
December.. 
Quarters: 

First... 

Second. 

Third.., 

Fourth. 
Year 


1 


107 

107 

107 

107 

107 

107 

107 

107 

91 

91 

01 

101 
107 
107 
91 
101 


91 
100 
100 


107 
107 
96 
96 
100 
100 
158 
158 


161 

269 

376 

967 

204 

204 

229 

322 

375 

375 

SI 


97 
107 

s 

98 

940 

138 

976 

110 

944 

293 

346 

346 

275 

267 

275 

376 

227 

222 

240 

284 

329 

329 
273 
241 
284 
382 


329 
293 
275 
258 
258 

^ 

284 
249 
256 
276 
299 

290 

209 
276 
275 
280 


399 
399 
394 
399 
996 
966 

a«9 

962 
382 
382 
444 
444 


339 
829 
346 
346 


336 


PuBusHED  Price  Quotations  on  Woolen  Rags  and  Clips,  January,  191S-Apbil, 

1919— Continued. 

A.  USED  MATERIALS— Continued. 

PrM56S  on  Rags,  Woolen,  "Mixed  linseysV 

[Market:  New  York.    Soiu-ce:  Waste  Trade  Journal.    Unit:  Poimd.    Quotation:  First  Thursday  of  each 

month,  I913-1919.J 

ACTUAL  PRICES. 


1913 

1914 

1915 

1916 

1917 

1918 

1919 

January 

February 

March 

April 

May 

June 

July 

August 

September 

October 

Novemba 

December 

Quarters: 

First 

Second 

Third 

Fourth 

Year 

"so.  6166" 

.0100 
.0100 
.0100 
.0100 
.0150 
.0150 

*'*'*6i66' 

.0100 
.0133 
.0114 

so.  0163 
.0200 
.0275 
.0200 
.0138 
.0138 
.0138 
.0150 
.0200 
.0163 
.0175 
.0200 

.0213 
.0159 
.0163 
.0179 
.0178 

SO.  0238 
.0238 
.0350 
.0425 
.0300 
.0338 
.0338 
.0300 
.0300 
.0300 
.0350 
.0350 

.0275 
.0354 
.0313 
.0333 
.0319 

SO.  0350 
.0263 
.036:{ 
.0263 
.0263 
.0263 
.0288 
.0286 
.0288 
.0288 
.0288 
.0288 

.0292 
.0263 
.0288 
.0288 
.0283 

j 8 

SO.  0375 
.0375 
.0325 
.0325 

**"■"""••• 

.0356 

RELATIVE  PRICES. 
[Average  actual  price  July  1, 1913  to  June  30, 1914  =  SO.  01  =  lOO.J 


January 

February. . . 

March 

April 

May 

June 

July 

August 

September., 
October.... 
November. . 
December. . 
Quarters:   • 

First... 

Second. 

Third... 

Fourth. 
Year 


100 
100 
100 
100 
100 
150 
150 


100 
100 
133 
114 


163 
200 
275 
200 
138 
138 
138 
150 
200 
163 
175 
200 

213 
159 
163 
179 
178 


238 
238 
360 
425 
300 
338 
338 
300 
300 
300 
350 
350 

275 
354 
313 
333 
319 


350 
263 
263 

263 
263 
263 
288 


288 


288 

292 
263 
288 
288 


288 
288 
288 

288 
288 
288 
325 
375 
425 
425 
425 
375 

288 
288 

375 
406 
340 


376 
375 
325 
325 


356 


^^ 


68 


KEPORT  ON  WOOLEN  RAG  TRADE. 


Published  Price  Quotations  on  Woolen  Raos  and  Clips,  January,  1913-April, 

1919— Continued. 

B.  NEW  WOOLEN  CLIPS. 
Prices  on  Rags,  New  Woolen  Clips,  *'Fine  merchant  tailof^  clips. 

(Market:  New  York.    Source:  Waste  Trade  Journal.  Unit:  Pound.    Quotations:  First  Thursday  of  each 

month,  1913-1919.] 

ACTUAL  PRICES. 


"■ 

1913 

1914 

1915 

1916 

1917 

1918 

1919 

J&nuarv  ....•• 

10.0675 
.0675 
.0825 
.0835 
.0788 
.0750 
.0663 
.0688 
.0688 
.0750 
.0800 
.0600 

.0725 
.0788 
.0680 
.0783 
.0744 

$0.0750 
.0800 
.0800 
.0888 
.0800 
.0800 
.0700 
.0700 
.0925 
.0950 
.0875 
.0875 

.0783 
.0829 
.0775 
.0900 
.0822 

10.0950 
.1100 
.1400 
.1250 
.1250 
.1250 
.1300 
.1300 
.1625 
.1550 
.1700 
.1850 

.1150 
.1250 
.1408 
.1700 
.1377 

$02300 
.-2850 
.2350 
.2100 
.2100 
.2100 
.2100 
.1900 
.1850 
.1850 
.2100 
.2250 

.2500 
.2100 
1950 
.2067 
.2154 

$0.2350 
.2000 
.2050 
.1850 
.2050 
.2150 
.2150 
.2150 
.2150 
.2150 
.2300 
.2400 

.2133 
.2017 
.2150 
.2283 
.2146 

$0.2500 
.3600 
.2600 
.3600 
.3800 
.3100 
.3300 
.3660 
.8800 
.8800 
.3800 
.8800 

.2567 
.3833 
.3683 
.3683 
.3164 

I0.3100 

February 

.2900 

March 

.2900 

April 

.2900 

May 

Jntift .... - 

July 

August 

SeDtember • 

October 

November 

December 

Quarters: 

First - 

.2967 

Second 

Third 

Fourth 

Year 

REPORT  ON  WOOLEN  RAG  TRADE. 


69 


RELATIVE  PRICES. 
[Average  actual  price  July  1, 1913,  to  June  30,  1914=$0.0769=100.1 


January... 
February. . 

March 

April 

May 

June 

July 

August...- 
September. 
October... 
November. 
December. 
Quarters: 

First.. 

Second 

Third.. 

Fourth 
Year 


88 

98 

124 

299 

306 

325 

88 

104 

14a 

371 

260 

?88 

107 

104 

182 

306 

267 

338 

107 

115 

163 

273 

241 

388 

102 

104 

163 

273 

267 

364 

98 
86 

104 
.91 

163 
169 

273 
273 

280 
280 

408 
429 

89 

91 

169 

247 

280 

475 

89 
08 

120 
124 

211 
202 

241 
241 

280 
280 

494 
494 

104 

114 

221 

273 

299 

494 

104 
94 

114 
102 

241 
150 

293 
325 

312 

277 

429 
384 

102 

108 

163 

273 

262 

368 

88 

102 

97 

101 
117 
107 

183 
221 
179 

264 
269 
280 

280 
297 
279 

465 
471 
410 

408 

377 
377 
377 


387 


Published  Price  Quotations  on  Woolen  Rags  and  Clips,  January,  1913-April, 

1919— Continued. 

B.  NEW  WOOLEN  CLIPS— Continued. 
Prices  on  Rags,  New  Woolen  Clips,  "Black  worsteds.'' 

f Market:  New  York.    Source:  Waste  Trade  Journal.    Unit:  Pound.    Quotation:  First  Thursday  of  each 

month,  1913-1919.] 

ACTUAL  PRICES. 


January... 
February.. 

March 

April 

MSy 

June 

July 

August  — 
September. 
October... 
November. 
December. 
Quarters: 

First.. 

Second 

Third.. 

Fourth 
Year 


1913 


$0 


.1650 
1650 
1700 
.1700 
.1700 
.1650 
.1650 
.1550 
.1550 
.1650 
.1700 
.1700 

.1667 
.1683 
.1583 
.1683 
.1654 


1914 


$0 


1525 
1550 
.1600 
.1650 
.1550 
.1550 
.1450 
.1450 
.1700 
.1700 
.1650 
.1650 

.1558 
.1583 
.1533 
.1667 
.1585 


1915 


$0.1800 
.1900 


.2450 
.2350 
.2550 
.2850 

.1850 


2450 
.2583 
.2317 


1916 


$03200 
.3650 
.3150 
.3350 
.3500 
.3450 
.3450 
.3500 
.3200 
.2900 
.3550 
.3650 

.3333 
.3433 
.3383 
.3367 
.3379 


1917 


$0.3550 
.3500 
.3450 
.3250 
.3^ 
.3375 
.3375 
.3375 
.3375 
.3300 
.3500 
.4375 

.3500 
.3308 
.3375 
.3725 
.3477 


1918 


1919 


$0 


4375 
4375 
4375 
.4375 
.4375 
.4700 
.5200 
.5750 
.6500 
.6500  I 

.6500  ; 

.6450  { 

.4375 
.4483 
.5817 
.6483 
.5290 


$0.580e 
.5600 
.5100 
.5100 


.5500 


RELATIVE  PRICES. 
[Average  actual  price  July  1, 1913,  to  June  30, 1914-$0.1602-100.1 


January... 
February. . 

l£arch 

April 

May 

June 

July 

August 

September. 
October... 
November. 
December. 
Quarters: 

First.. 

Second 

Third.. 

Fourth 
Year 


103 
103 
106 
106 
106 
103 
103 
97 
97 
103 
106 
106 

104 
105 
99 
105 
103 


95 

97 

100 

103 

97 

97 

91 

91 

106 

106 

103 

103 

97 
99 
96 
104 
99 


112 
119 


153 
147 
159 
178 

115 


153 
161 
145 


200 
228 
197 
209 
218 
215 
215 
218 
200 
181 
222 
228 

206 
214 
211 
210 
211 


222 

273 

218 

273 

215 

273 

203 

273 

206 

273 

211 

293 

211 

325 

211 

350 

211 

406 

206 

406 

218 

406 

273 

402 

218 

273 

206 

280 

211 

363 

233 

404 

217 

330 

382 
349 
318 
318 


343 


70 


KEPORT  ON  WOOLEN  RA.G  TRADE. 


Published  Price  Quotations  on  Woolen  Raqs  and  Clips,  January,  1913-April, 

1919— Continued. 

B.  NEW  WOOLEN  CLIPS— Continued. 

Pricea  on  Rags,  New  Woolen  Clips,  '*Blue  worsteds.' ' 

(Market:  New  York.    Source:  Waste  Trade  Journal.    Unit:  Found.    Quotations:  First  Thursday  of  each 

month,  1913-1919.] 

ACTUAL  PRICES. 


January.. 
February. 

March 

April 


June 

July 

August 

September- 
October 

November.. 
December.. 
Quarters: 

First... 

Second. 

Third.., 

Fourth. 
Year 


1913 


SO. 1150 
.1150 
.1550 
.1350 
.1350 
.1225 
.1050 
.1100 
.1100 
.1250 
.1306 
.1306 

.1263 
.1308 
.1083 
.1287 
.1341 


1914 


10.1125 
.1300 
.1350 
.1413 
.1300 
.1300 
.1200 
.1150 
.1500 
.1550 
.1500 
.1500 

.1292 
.1338 
.1283 
.1517 
.1357 


1915 


10.1700 
.1950 
.2400 
.2150 
.2150 
.2150 
.2100 
.2150 
.2450 
.2200 
.2550 
.2700 

.2017 
.2150 
.2233 
.2483 
.2221 


1916 


1917 


10 


3100 
3450 
3100 

.2950 
2800 

.2800 

.2800 
2750 
2650 
2350 

.3200 
3150 

.3217 
.2850 
.2733 
.2900 
.2925 


$0.3450 
.3150 
.3175 
.3150 
.3125 
.3225 
.3225 
.3275 
.3200 
.3200 
.3700 
.3700 

.3258 
.3167 
.3233 
.3533 


1018 


10.4350 

.4350 

.4150 

.4150 

.4300 

.4A00 

.5150 

6100 

6200 

.6200 

.6200 

6100 

.4217 
.4317 
.6983 
.6167 
6171 


1919 


10.5300 
.4700 
.4550 
.4550 


.4850 


RELATIVE  PRICES. 
[Average  actual  price  July  1, 1913,  to  June  30, 1914='$0.125=100.1 


January.. 
February. 

March 

April 


June 

July 

August 

September.. 

October 

November.. 
December.. 
Quarters: 

First... 

Second. 

Third.., 

Fourth. 
Year 


92 

92 

124 

106 

108 

98 

84 

88 

88 

100 

104 

104 

103 
105 

87 

103 

99 


98 
104 
108 
113 
104 
104 
96 
92 
120 
124 
120 
120 

103 
107 
103 
121 
109 


136 

248 

156 

276 

192 

248 

172 

236 

172 

224 

172 

224 

168 

224 

172 

220 

196 

212 

176 

188 

204 

256 

216 

252 

161 

257 

172 

228 

179 

219 

199 

232 

178 

234 

276 
252 
254 
252 
250 
258 
258 
262 
256 
256 
296 
296 

261 
252 
250 
283 
264 


340 
.340 
332 
332 
344 
360 
452 
488 
495 
495 
495 
488 

337 
345 
478 
493 
413 


424 
376 
360 
360 


388 


BEPOBT  ON  WOOLEN  RAG  TRADE. 


71 


Published  Price  Quotations  on  Woolen  Rags  and  Cups,  January,  IQIS-April, 

1919 — Continued. 

B.  NEW  WOOLEN  CLIPS— Continued. 
Prices  on  Rags,  New  Woolen  Clips,  ''Fine  light  worsteds." 

TMarket:  New  York.    Source:  Waste  Trade  Journal.    Unit:  Found.    Quotation:  First  Thursday  of  each 
^  month,  1913-1910.] 

ACTUAL  PRICES. 


January 

February... 

March 

April 

May 

June 

July 

August 

Septembv.. 

October 

November.. 
December.. 
Quarters: 

First... 

Second. 

Third... 

Fourth. 
Year........ 


January 

February... 

March 

April 

Itoy 

June 

July 

August 

September.. 

October 

November.. 
December.. 
Quarters: 

First... 

Second. 

Third... 

Fourth. 
Year 


1913 


1914 


90.1150 
.1160 
.1500 
.1400 
.1400 
.1250 
.1050 
.1100 
.1100 
.1200 
.1325 
.1325 

.1267 
.1350 
.1083 
.1283 
.1246 


$0.1225 
.1300 
.1350 
.1400 
.1250 
.1250 
.1200 
.1150 
.1400 
.1450 
.1400 
.1400 

.1292 
.1300 
.1250 
.1417 
.1315 


1915 


SO.  1400 
.1650 
.1750 
.1650 
.1650 
.1750 
.1900 
.1900 
.2400 
.2050 
.2500 
.2550 

.1600 
.1683 
.2067 
.2367 
.1920 


loie 


1917 


$0.2500 
.3300 
.2600 
.2400 
.2400 
.2400 
.2300 
.2150 
.2200 
.2050 
.2550 
.2450 

.2800 
.2400 
.2217 
.2350 
.2442 


$0.2650 
.2360 
.2450 
.2450 
.2250 
.2350 
.2350 
.2360 
.2350 
.2250 
.2900 
.3500 

.2463 
.2350 
.2350 
.2883 
.2517 


1918 


1919 


$a3500 ;    90l410o 

.3500  .4000 
.3500  .4000 
.3500  I    .4000 

.3650  I 

.3850  I 

.4200  ; 

.4700  

.5000  ! 

.5000  ! 

.5000  

.4600  I 

.3500     .4067 

.3667  

.4633  I 

.4866  I 

.4167  I 


RELATIVE  PRICES. 
[Average  actual  price  July  1, 1913,  to  June  30, 1914,-$0.134O-100.] 


93 

93 

121 

113 

113 

101 

85 

89 

89 

97 

107 

107 

102 
109 
87 
108 
100 


99 
105 
109 
113 
101 
101 
97 
93 
113 
117 
113 
113 

104 
105 
101 
114 
106 


113 
133 
141 
133 
133 
141 
153 
153 
194 
165 
202 
206 

129 
136 
167 
191 
156 


202 
286 
210 
194 
194 
194 
185 
173 
177 
165 
206 
198 

226 
134 
179 
190 
197 


214 
190 
198 
198 
181 
190 
190 
190 
190 
181 
234 
282 

200 
190 
190 


208 


282 
282 
282 
282 
294 
310 
339 
379 
408 
403 
403 
370 

282 
296 
373 
392 
336 


337 


*  V 


72 


REPORT  ON  WOOLEN  RAG  TRADE. 


Published  Pbicb  Quotations  on  Woolen  Rags  and  Clips,  January,  1913-Apbil, 

1919— Continued. 

B.  NEW  WOOLEN  CLIPS— Continued. 
Prices  on  Rafft,  New  Woolen  Clips,  *'Blue  serges'' 

[Market:  New  York.    Source:  Waste  Trade  Journal.   Unit:  Pound.    Quotation:  First  Thursday  of  each 

month,  1913-1919.] 

actual  prices. 


January.... 
February... 

March 

April 

May 

June 

July 

August 

September.. 

October 

November. . 
December.. 
Quarters: 

First-. , 

Second. 

Third... 

Fourth. 
Year 


January 

February... 

March 

April 

May 

June 

July 

August 

September.. 

October 

November.. 
December.. 
Quarters: 

First... 

Second. 

Third.., 

F(Kirth. 
Year 


1913 


to.  1050 
.1050 
.1150 
.1076 
.1075 
.1075 
.0750 
.0788 
.0850 
.0900 
.1025 
.1025 

.1083 
.1075 
.0796 
.0983 
.0984 


1914J 


$0.0900 
.0900 
.0925 
.0925 
.0938 
.0938 
.0913 
.0900 
.1100 
.1350 
.1250 
.1250 

.0908 
.0934 
.0971 
.1283 
.1024 


1915 


10.1650 
.2100 
.2300 
.1850 
.1850 
.1850 
.1950 
.1950 
.2450 
.2250 
.2650 
.2700 

.2017 
.1850 
.2117 
.2533 
.2129 


1916 


10.2800 
.3100 
.2850 
.2350 
.2300 
.2300 
.2300 
.2300 
.2050 


.2350 
.2550 

.2917 
.2317 
.2217 
.2450 
.2477 


1917 


SO.  2350 
.2400 
.2425 
.2350 
.2450 
.2750 
.2750 
.2750 
.2750 
.2750 
.3100 
.3650 

.2392 
.2617 
.2760 
.3167 
.2706 


1918 


10.8650 
.S650 
.8650 
.  8650. 
.4100 
.4500 
.4800 
.5100 
.5000 
.5000 
.5000 
.4600 

.3650 
.4083 
.4967 
.4867 
.4392 


RELATIVE  prices. 
(Average  actual  prices  July  1, 1913,  to  June  30, 1914, -$0.0905- 100.] 


116 

116 

127 

119 

119 

119 

83 

87 

94 

99 

113 

113 

120 
119 
88 
109 
109 


99 
99 
102 
102 
104 
104 
101 
99 
122 
149 
138 
138 

100 
103 
107 
142 
113 


182 
232 
264 
204 
204 
204 
216 
215 
271 
249 
293 
ZB8 

223 
204 
234 
280 
285 


309 
343 
315 
260 
254 
254 
254 
254 
227 


260 
282 

322 
256 
245 
•271 
274 


260 
265 
268 
260 
271 
304 
304 
304 
304 
304 
3^ 
403 

264 
278 
304 
350 
299 


403 
403 
40j3 
403 
453 
497 
530 
564 
552 
562 
552 
608 

403 
451 
548 
637 
486 


1919 


$0.4300 
.4300 
.4300 
.4300 


.4300 


47ft 
47S 

47ft 
47ft 


47$ 


REPORT  ON  WOOLEN  RAG  TRADE. 


73 


Published  Pbice  Quotations  on  Woolen  Rags  and  Clips,  Januaby,  19ia-APBiL, 

1919— Continued. 

B.  NEW  WOOLEN  CLIPS— Continued. 
Prices  on  Rags,  New  Woolen  Clips,  "WhiU  serges. 

[Market:    New  York.   Source:  Waste  Trade  Journal.   Unit:  Pound.    Quotation:  First  Thursday  of  each 
*■  month,  1913-1919.J 

ACTUAL  PRICES. 


f 


1$ 


January — 
February... 

March 

AprU 

May 

June 

July 

August 

September.. 

October 

November. . 
December.. 
Quarters: 

First... 

Second. 

Third... 

Fourth. 
Year 


January.. 
February. 
March.... 

April 

M^] 


ray 

June 

July 

August 

September.. 

October 

November.. 
December.. 
Quarters: 

First... 

Second. 

Third... 

Fourth. 
Year 


1913 


1914 


$0.2750 
.2876 
.2875 


$0.2200 
.2200 
.2200 
.2200 
.2000 
.2050 
.2050 
.2050 


1915 


1916 


$0.3800 


1917 


$0.2900 


.2838 
.2833 


.2200 
.2083 
.2050 


$0.3400 
.2550 


.2110 


.2975 
.2975 


.8500 
,8500 
.8400 
.8400 
.3400 
.3250 
.2900 
.2900 
.2900 

.8800 
.3467 
.3350 
.2900 
.3295 


'i 


1918 


1919 


.3600 
.8600 
.4100 
.4650 

.2900 


.3600 
.4117 
.3770 


$0.4650 
.4650 
.4650 
.4650 
.4850 
.4850 
.5360 
.5700 
.7000 
.7000 
.7000 
.7000 

.4«50 

.4788 
.6017 
.7000 
.5612 


$0.7100 
.6760 
.6760 
.6760 


RELATIVE  PRICES. 
[Average  actual  price  July  1, 1913,  to  June  80, 1914,-$0.2372-100.] 


116 
121 
121 


98 
98 

84 
86 
86 
86 


160 


143 
108 


119 
119 


86 


126 
125 


148 
148 
143 
143 
143 
137 
122 
122 
122 

160 
146 
141 
122 
139 


122 


152 
152 
173 
196 

122 


152 
174 
159 


196 
196 
196 
196 
204 
204 


240 
295 
296 
296 
295 

196 
202 
253 
295 
236 


SftI 


74 


REPOKT  ON  WOOLEN  RAG  TRADE. 


Exhibit  XI. 


REPORT  ON  WOOLEN  RAG  TRADE. 


75 


Prices  Compiled  from  Reports  to  War  Industries  Board  made  by  Rao  Dbaiers, 

Jxtly-Septembbr,  1918. 


son  WOOLBNS. 


High. 


Low. 


lOzed  softs. 


Orai^  softs. 

SjTvWia  SGl^Oa •••••••••■•••••••• 

\#roGu  sori^o*  ••••••••••••••••••• 

Red  serge 

Black  sei^e 

White  softs 

White  flannel  and  serge 

Hed  knits  mixed 

Blue  knits  mixed 

Silver  gray  knits 

Brown  knits 

Fancy  knits 

Black  dressed  knits 

Light  hoods 

Light  gray  underwear 

Fine  light  merino 

Fine  dark  merino 

Coarse  dark  merino  with  serge. 
Coarse  light  merino  with  serge. 

Thibets 

Mixed  linseys 


Carpets. 


Wool 

Softback. 


HA&D  WOOLENS. 

Boufi^  cloth 

Skirted  cloth. 


Ripped  from  rough  cloth. 
Sorted  from  mixed  rags. . . 

Mixed  delaines , 

Light  cloth , 

Black  and  white  cloth . . . , 

Fine  light  cloth 

Brown  cloth 

Dark  cloth 

Black  cloth 

Bhie  cloth 

Tan  cloth 

Light  worsted 

Blue  worsted 

Black  worsted 

Brown  worsted 

Dark  worsted 

White  fancy  flannels 


Graded  dips. 


Black  worsted 

Blue  worsted 

Blue  worsted  edges 

Brown  worsted 

Black  and  white  worsted 

Light  wOTsted 

Fine  light  worsted  and  cloth. . 

Fine  light  cloth 

Fine  dark  worsted 

Fine  dark  worsted  and  doth. . 

Fine  mixed  cups. 

Mixed  dark  clips... « 

Mixed  cUps. 

Medium  mixed  clips 


to.  21 


.27 
.35 
^39 
.35 
.22 
.55 
.48 
.86 
.34 

.aei 

.42 

.47i 

.40 

.80 

.43 

.86 

.82 

.22 

.18 

.25 


Generally  prevail- 
ing price. 


.or  J 


.05 


lot 


I0.18i 


.18 
.23 
.21 

.m 

.20 

.48 

.30 

.10 

.18§ 

.35 

.19 

.15 

.20 

.30 

.08} 

.18 

.15 

.10 

.00 

.17 

.02) 


.05) 
.68 


.06 


10.20) 


.20  to  $0.21) 

.25  to      .28 

.28  to     .27) 

.22  to     .23 

.17  to     .18 

.44  to     .48 


Maxi- 
mum 
establish- 
ed by 
War  In- 
dustries 
Board. 


.06| 

.18 

.18 

.00 

.11) 

.12 

.17 

.25 

.86 

.24) 

.25 

.22 

.36 

.13 


.66 

.70 

.52) 

.67 

.54 

.60 


.48 

.46  to 

.21  to 

.21  to 

.36  to 

.26  to 

.17  to 
.27 

.33  to 

.10  to 
.26)  to 

.16  to 

.13  to 

.18  to 

.20  to 
.03)  to 


.52 

.22) 

.22 

.37) 

.27) 

.19 

.13 

.28 

.18 

.14) 

.21 

.21) 

.04 


.08    to     .09) 
.03)  to     .04i 


.08    to     .0^ 


.45 

.48 
.46 
.68 
.47 


.85 
.30 
.25 
.30 
.30 
.25 


.34 

.35) 

.30 

.21 

.14 


.04)  to 
.12  to 
.13)  to 
.16  to 
.07)  to 
.06 

.06  to 
.06)  to 
.20  to 
.20  to 
.17  to 
.17  to 
.17  to 
.13  to 
.04)  to 


.65  to 

.56  to 

.45 

.40  to 

.44  to 

.36  to 


.58 
.58 

.43 
.47 
.38 


.30  to 
.38 

.44  to 

.36  to 

.86  to 


.42 

.45 

.40 
.40 


Extent  to  which 
maximum  ex- 
ceeds generally 

prevailing  price. 


SO.  21) 


.25 

.32 

.32 

.28 

.22 

.52 

.50 

.56 

.27) 

.26) 

.45 

.32 

.21 

.30 

.38 

.16 

.32 

.25 

.16 

.24 

.28) 

.04i 


.10) 
.OH 


.0^ 


.11) 

.10 

.06) 

.15) 

.17 

.18) 

.10 

.0^ 

.10 

.10 

.25 

.25 

.21 

.22 

.23 

.17 

.07 


.65 
.62 
.50 
.57 
.56 
.54 
.50 
.45 
.48 
.47 
.44 
.40 
.35 
.32 


•0.01 


.03)  to  t0.05 

.04  to  .07 

.04)  to  .06 

.05  to  .06 

.04  to  .05 

.04  to  .OS 
.02 

.04  to  .11 

.05  to  .06) 

.04)  to  .06) 

.07)  to  .09 

.04)  to  .06 

.02  to  .04 
.03 

.02)  to  .05 

.03  to  .06 

.04  to  .05) 

.07  to  .09 

.01)  to  .03 

.03  to  .06 

.07  to  .08) 

.00)  to  .01 


.00)  to  .01) 
.00)  to  .01 


.00  to  .OOi 


.01  to  .02 

.02  to  .03u 

.02)  to  .03f 

.02tto  .03m 

.01  f  to  .02t 
.02, 

.03  to  .04 

.02,  to  .03) 

.(»)  to  .05 

.02  to  .05 

.03  to  .04 

.03  to  .05 

.04  to  .06 

.03  to  .04 

.00)  to  .02) 


.07  to 

.04  to 
.05 

.14  to 

.06  to 

.16  to 


.10 
.07 

.17 
.12 
.18 


.03 

to 

.06 

.10 

.02 

to 

.08 

.04 

to 

.09 

.00 

to 

.06 

I 


\ 


Prices  Compiled  prom  Reports  to  War  Industries  Board  made  by  Rao  Dealers, 

July-September,  1918— €ontinued. 


High. 


HABD  WOOLENS— continued. 
Graded  clips— Continued. 


Heavyweight  clips 

Coarse  dark  clips 

Coarse  light  cUps 

Ordinary  light  clips 

Black  and  white 

Dark  gray  oxford 

Blue  uniform  clips  (without  edges) . . . 

Fancy  mackinaw 

Ordinary  unions 

Light  unions 

light  blue  serge 

Black  serge 

Blue  serge 

Brown  serge 

Green  serge •• 

Red  serge 

Tan  serge 

Black  and  blue  serge  edges 

Dark  serges 

Light  serges < 

White  serges  and  flannels 

Blue  cheviot • 

Red  cheviot 

Brown  cheviot ■ 

Green  cheviot 

Black  cheviot 

Light  blue  cheviots 

Tan  cheviot 

Light  homespun 

Medium  homespun 

Ordinary  homespun 

Light  flannels 

Blue  flannels 

Red  flannels 

Green  flannels 

French  flannels 

Mixed  flannels 

Black  flannels 


Ungraded  dips. 
Fine  merchant  tailor 


Low. 


•  22) 


Generally  prevail- 
ing price. 


.18 


.32) 
.26 
.40 
.40 


.22 

.11 

.53 

.50 

.57) 

.57) 

.52 

.50 

.70 


.10 
.22 
.061 
.27 


mum 
establish- 
ed by 
War  In- 
dustries 
Board. 


Extent  to  which 
maximum  ex- 
ceeds generally 

prevailing  price. 


,19 


.02 
.04 
.86 
.82 
.23 
.32 
.35 
.80 
.38 


.12  to 

,24  to 

.25  to 

.30  to 


.14 
.25 

.28 
.35 


.05  to 

.05)  to 

.44  to 

.40  to 

.45  to 

.40  to 

.40  to 

.40  to 

.45  to 


.33 

.43 

.75 

.35 

.28) 

.31 

.28 

.27 


.32 


.18 
.20 
.44 
.24 
.22 
.20 
.22 
.23 


.20 


.51 

.42 

.40 

.35 

.38) 

.40 

.42 


.44 


.25 
.20 
.20 
.25 
.16 
.20 
.26 


.22  to 

.35  to 

.55  to 

.25  to 
.25 

.25  to 

.24  to 
.25 


.28  to 

.30  to 

.28  to 

.33  to 

.25  to 

.25  to 

.32  to 


.06 

.07) 

.48 

.45 

.50 

.45 

.45 

.45 

.50 


.25 
.40 
.60 

.28 

.28 
.26 


.24  to   .26 


.33 
.35 
.30 
.35 
.30 
.30 
.35 


.38  to   .40 


.28 

.23 

.25 

.20 

.30 

.26 

.38 

.20 

.08 

.11 

.52 

.50 

.50 

.50 

.50 

.50 

.60 

.35 

.35 

.45 

.70 

.28 

.28 

.28 

.28 

.28 

.28 

.35 

.35 

.80 

.26 

.35 

.35 

.35 

.35 

.27 

.25 

.33 


.38 


.04 

.06 

to 

.06 

.06 

to 

.06 

.01 

to 

.02 

.03 

to 

.08 

.02  to 

.08)  to 

.04  to 

.05  to 

.05  to 

.05  to 

.05  to 

.05  to 


.02  to 

.00  to 

.05  to 

.00  to 

.02  to 

.00  to 

.00  to 


.03 

.06) 

.08 

.10 

.10 

.10 

.10 

.10 


.10 

to 

.15 

.10 

to 

.13 

.05 

to 

.10 

.10 

to 

.15 

.00 

to 

.03 

.03 

.00 

to 

.03 

.02 

to 

.04 

.03 

.09  to   .11 


.07 
.05 
.07 
.02 
.03 
.05 
.01 


Ji^t'Wi 


76 


KEPOKT  ON  WOOLEN  RAG  TRADE. 
EXHIBIT  XII. 


Prices  Compiled  from  Information  Collected  from  the  Records  of  Dealers 

BY  the  Federal  Trade  Commission. 

Schedule  showing  flitctiLations  in  prices  of  specific  grades  of  rags  for  period  from  Jan.  1 

1917,  to   Nov.  1,  1918. 

OLD  RAGS. 


Kind  of  rags. 


son  WOOLENS. 

Mixed  soft 

White  softs 

White  knit 

Light  hoods 

Fancy  knit 

Steel  gray  knit 

Blue  knit 

Black  knit 

Red  knit 

Red  softs 

Fine  light  merino 

Coarse  light  merino. . . 

Fine  dark  merino 

Coarse  dark  merino. . . 

Brown  sei^ 

Green  serge 

Blue  serge 

Black  serge 

HARD  WOOLENS. 

Rough  cloth 

Light  cloth 

Tan  cloth 

Light  worsted 

Brown  worsted 

Black  worsted 

Blue  worsted 

Dark  worsted 

Dark  cloth 

Brown  cloth 

Black  cloth 

Delaines  (skirted 

mixed) 

Wool  carpets 


1917 


January. 


High. 


to.  13 
.25^ 
.27 
.21 
.14 
.17 
.18i 
.24 
.24 
.23 
.23 
.12 
.23 
.08 
.20 
.23 
.17i 
.18 


Low. 


SO. 


11 

25^ 

26 

20 

12 

17 

16 

24 

23 

21J 

22 

10 

21i 

06 

20 

21 

15 

17 


.05i 

.04§ 

.14 

.11 

.13 

.15i 

.14 

.111 
.06! 


.04 

.06 


July. 


High 


10.13} 
.32 
.34 
.22 
.14 
.20 
.17i 
.25 
.20 
.21 
.25 
.I4i 
.16 
.09i 
.18 
.22 
.13} 
•Hi 


.05 

.06 

.15 

.12i 

.14 

.17 

.16 

.10 

.05 

.061 

.061 

.031 
.07 


Low. 


$0.11 
.30 
.32 
.22 
.13i 
.20 
.17} 
.25 
.19} 
.19 
.23 
.13} 
.16 
.08} 
.18 
.22 
.13 
.14} 


.05 

.05} 

.14 

.11} 

.11} 

.14 

.12} 

.091 

.05 

.061 

.061 

.03 
.07 


1918 


January. 


High. 


SO.  14 

.41 

.43 

.25 

.20 

.35 

.22 

.28 

.26 

.2(* 

.27} 

.16} 

.16} 

.11} 

.24} 

.25 

.18 

.15} 


.05} 

.11 

.16} 

.15 

.17 

.20 

.18 

.11 

.06 

.07f 

.06} 


,03 
.07} 


Low 


SO.  11 
.34} 
.42 
.25 
.15 
.25 
.17} 
.23} 
.23 
.20} 
.26} 
.16 
.16 
09} 
.18 
.22 
.14 
.14} 


.06) 


April. 


High. 


SO. 


155 

40 

42 

31 

18} 

35 

24 

26 

26 

20 

28 

19 

18 

11} 

26 

28} 

20 

17 


.06 

.11 

.18} 

.19} 

.19^ 

.20 

.18 

.12} 

.06 

.08 

.06} 

.04 
.07i 


Low, 


SO. 


14 

28 

37 

27 

14 

26 

19 

24 

20 

20 

25} 

11 

15 

09f 

23 

22} 

14} 
14 


.05i 

.08 

.16 

.15 

.14} 

.14 

.13 

.09 

.041 

.07} 

.06} 

.04 
.07} 


July. 


High. 


SO. 


21 

47 

52 

37 

20 

40 

24 

29 

23 

22} 

30 

25 

22 

15} 

30 

30 

23 

19} 


.08} 

.131 

.21 

.24 

.25 

.26 

.20 

.14 

.07} 

.08| 

.07J 

.05 
.09} 


Low. 


SO.  17} 
.44 
.44 
.14 
.17 
.38 
.22 
.26 
.23 
.22} 
.29 
.16 

'.lOf 

.26 

.27 

.18} 

.15! 


.07} 

.08} 

.21 

.15 

.16 

'.m 

.11} 

.06 
.08 
.06} 

.05 
.08! 


October- 
November. 


High. 


SO.  23 
.62 
.55 
.87 
.10 
.45 
.24} 
.30 
.27} 
.21} 
.30 
.24 
.28} 
.15! 
.31 
.29} 
22! 
.22 


.09 
.15 

24 
.23 

25 
.20 
.19} 
.15 

.09 
.00 

.06 
.09! 


Low. 


S0.21i 
.39 
.511 
.34 
.171 
.35 
.22 
.274 
.26 
.21} 
.21 
.18 

;g| 

.18 
.27 
.201 
.19 


NEW   RAGS. 


Kind  of  clips. 


Fine  mixed  clips 

Mixed  clips 

Cotton  warp  cloaking 

Fine  merchant  tailor  clips. 

Black  worsted 

Blue  worsted 

Black  and  white  worsted. . 

Brown  worsted 

Dark  worsted 

Light  worsted 

Worsted  edges 

Blue  serge 

Black  serge 

Green  serge 

Red  serge 

French  flannels 

Blue  cheviot 

Oxford  clips 

White  sei^.. 

Blue  cloth 


1917 


January. 


High. 


SO.  25 
.22^ 
.12} 
.19 
.39 
.37 
.32} 
.27 
.30 
.29 
.31 
.28 
.32 
.32 
.30 
.25 
.23 
.21 
.39 
.22 


Low. 


SO.  25 
.22} 
.11 
.19 
.36 
.35 
.32} 
.27 
.30 
.29 
.31 
.27 
.32 
.32 
.30 
.22 
.19 
.20 
.33 
.22 


July. 


High. 


SO.  25 
.24 
.12 
.22 
.40 
.37 
.34 
.30 
.30 
.30 
.31 
.30 
.33} 
.34 
.32 
.27 
.22 
.22 
.45 
.23 


Low. 


SO.  25 
.22 
.12 
.20 
.40 
.37 
.30 
.30 
.29} 
.30 
.29 
.30 
.33} 
.34 
.32 
.27 
.22 
.22 
.40 
.23 


1918 


January. 


April. 


High. 


SO. 


31 

29 

12 

27 

45 

44 

40 

35 

31 

38 

36} 

42 

38 

38 

38 

28 

26 

23 

53 

26 


Low.  High. 


SO.  31 
.29 
.12 
.36 
.40 
.44 
.38 
.35 
.28} 
.30 
.36} 
.37 
.38 
.38 
.36 
.28 
.26 
.23 
.42 
.26 


Sa34 
.29 
.12 
.29} 
.46 

.52 
.42 
.40 
.48 
.39 
.44 
.35 
.38 
.38 
.30 
.27 
.25 
.60 
.29 


Low. 


SO.  28 
.18 
.12 
.25} 
.41 
.39 
.44 
.39 
.27 
.35 
.39 
.38 
.34 
.3^ 
.32 
.26 
.27 
.19} 
.45 
.29 


July. 


High. 


SO.  45 
.38 
.12 
.40 
.57 
.58 
.52 
.46 
.45 
.50 
.45 
.54 
.45 
.48 
.46 
.32 
.32 
.28 
.70 
.28 


Low. 


SO.  32 
.23 
.09 
.37 
.55 
.52} 
.44 
.43 
.45 
.48 
.38 
.47 
.43 
.45 
.36 
.31} 
.32 
.27 
.57 
.28 


October- 
November. 


High. 


SO.  44 
.42 
.12 
.87 
.62 
.62 
.  66 
.67 
.48 
.64 
.60 
.60 
.60 
.60 
.44 
.32 
.28 
.26 
.70 
.28 


Low. 


SO.  35 
.30 
.0» 
.37 
.61 
.59 
.5& 
.49 
.42 
.40 
.47 
.494 
.44 
.40 
.371 
.32 
.28 
.254 
.65 
.28 


REPORT  ON  WOOLEN  RAG  TRADE. 


77 


Exhibit  XIII. 
Classification  of  Woolen  Rags  Compiled  by  the  Federal  Trade  Commission, 
summary  of  main  classifications  of  woolen  rags. 

Old  woolen  rags: 

Mixed  country  raga. 
Soft  woolens — 

Ungraded  soft  woolens. 

Graded  soft  woolens. 
Hard  woolens — 

Rough  cloth. 

Skirted  cloth. 
Carpets. 
Felts. 
Haircloths. 
Linaeys. 
Seams. 
New  woolen  rags: 

New  woolen  clips,  ui^praded — 

Miscellaneous  cuttings  of  wool  and  strakrht  cotton  materials,  mixed. 

Men's  wear. 
Women's  wear. 
Carriage  and  auto  clips. 
Felts. 
Headings,  ungraded. 
Graded  clips  and  headings- 
Mixed  materials. 
Straight  materials — 

Bunting. 

Cheviots. 

Flannels, 

Delaines  (including  alpaca'). 

Homespuns. 

Kerseys. 

Mackinaws. 

Palm  beach. 

Serges. 

Uniform  materials. 

Unions. 

Worsteds. 
Miscellaneous  additional  materials. 

old   woolen    RAGS. 

Mixed  country  rags. 
Soft  woolens: 

Ui^raded  soft  woolens — 

Mixed  softs. 

Wool  bodies. 

Delaine  bodies. 
Graded  soft  woolens —  * 

White  softs. 

Red  softs. 

Softs,  graded  as  to  other  colors. 

Small  softs. 


aSta 


78 


REPORT  ON  WOOLEN  RAG  TRADE. 


Soft  woolens — Continued. 

Graded  soft  woolens — Continued. 
Flannels — 

Coarse  white  flannels. 

Fine  white  flannels. 

Fine  white  flannels  and  serges. 

Black  flannels. 

Blue  flannels. 

Brown  flannels. 

Red  flannels  (mixed) — 

Scarlet. 

Maroon. 
Delaines — 
Mixed. 
Dark. 
Light. 
Black. 

Black  and  white. 
Blue. 
Brown. 
Green. 
Red. 
Tan. 
White. 
Silesias  (mixed) — 

Dark. 

Light. 
Knits — 

Black,  dressed. 
Black,  undressed. 
Blue  (mixed) — 

Dark. 

Light. 
Brown. 
Gray  (mixed) — 

Coarse. 

Silver  or  steel. 

Sheep's  gray. 

Light  gray  underwear. 

Soiled  light  gray  underwear. 
Green. 
Red  (mixed) — 

Scarlet. 

Maroon. 
White. 

White,  soiled. 
Hoods- 
Light. 

Dark,  including  fancy  knits  and  comforters. 
Knit  boots. 
Merinos — 

Coarse  dark  with  serges. 
Coarse  dark  without  serges. 
Coarse  lights  with  serges. 


REPORT  ON  WOOLEN  RAG  TRADE. 

Soft  woolens — Continued. 

Graded  soft  woolens — Continued. 
Merinos — Continued . 

Coarse  lights  withaut  serges. 
Coarse  lights,  free  of  black,  with  serges. 
Coarse  lights,  free  of  black,  without  serges. 
Coarse  black  and  white  with  serges. 
Coarse  black  and  white  without  serges. 
Fine  black  with  thibets. 
Fine  dark  with  thibets. 
Fine  dark  with  thibets,  free  of  black. 
Fine  black. 
Fine  light. 

Fine  light,  free  of  black. 
Fine  black  and  white. 
Fine  dark  merino  flannels. 
Thibets— 
Dark. 
Black. 

Dark,  free  of  black. 
Serges — 
Dark. 
Light. 
Black. 

Black  and  white. 
Blue  (mixed) — 
Dark. 
Light. 
Brown. 
Green. 
Red. 
Tan. 
White. 
Voiles. 
Blankets — 

White  wool,  border  on. 
White  wool,  free  of  border. 
Light  wool. 
Laundry  No.  1. 
Laundry  No.  2. 
Linsey. 
Horse. 
Hard  woolens: 
Rough  cloth — 

Rough  garments. 
Rough  cloth  with  vests. 
Rough  eloth,  free  of  vests. 
Rough  cloth,  without  worsteds. 
Rough  worsteds — 
Mixed. 
Dark. 
Light. 

Graded  for  color. 
Rough  mixed  vests. 


79 


80 


REPORT  ON  WOOLEN  R4G  TRADE. 


Hard  woolens — Continued. 
Rough  cloth — Continued. 

Rough  mixed  vests,  without  wonteds. 
Rough  worsted  vests. 
Satinets. 
Skirted  cloth,  mixed — 
Sorted  from  mixed  rags. 
Ripped  from  rough. 
Mixed  skirted  worsted. 
Mixed  skirted  cloth,  without  worsteds. 
Mixed  skirted  vests. 
Skirted  cloth,  graded — 
Dark. 
Fine  dark. 
Light  (mixed) — 
Free  of  black. 
Black  and  white. 
Fine  light  cloth  (mixed) — 
Free  of  black. 
Black  and  white. 
Black  cloth  (mixed) — 
Coarse. 
Fine. 
Blue  cloth. 
Brown  cloth. 
Dark  oxford  cloth. 
Gray  cloth — 

Including  gray  chinchilla. 
Green  cloth. 
Green  billiard  cloth. 
Red  cloth. 
Tan  cloth,  mixed. 
Tan  cloth,  without  coverts. 
Tan  coverts. 
Cheviots. 
♦       Homespuns  (mixed) — 
Light. 

Black  and  white. 
Satinets. 
Small  cloth. 
Uniform  cloth — 

Letter  carrier  (cadet). 
Army  blue  (mixed) — 
Dark. 
Light. 
Worsteds — 
Dark. 
Fine  dark. 
Light  (mixed) — 

Free  of  black. 
Black  and  white  (including  gray). 
Black  (mixed) — 
Coarse. 
Fine. 


I 


^  •» 


k 


REPORT  ON  WOOLBK  BAG  TBADE. 

Hard  woolens — Continued. 

Skirted  cloth,  graded — Continued. 

Worsteds — Continued. 

Blue. 

Brown. 

OutthrowB — 

Dark. 

Light  (including  graded  for  color). 
Oarpets: 

Mixed  carpets. 
Hard  back  carpets. 
Soft  back  carpets. 
Linsey  carpets. 
Wool  carpets. 
Carpet  ravelings  and  balls. 
Felts: 

Paper  mill  felts- 
Sound  No.  1. 
Sound  No.  2. 
Sound  No.  3. 
Old  wool  felts — 

Hard  mixed  colors — 
Dark. 
White. 

Graded  for  other  colors. 
Soft  mixed  colors — 
Dark. 
White. 

Graded  for  other  colors. 

Boots. 

Hats. 
Hair  cloths  (including  press  cloths): 
Mixed. 
Camel's  hair. 
Goat  and  other  hair. 
Mohair — 

Mixed. 

White, 
linseys: 

Mixed  linseys. 
Graded  linseys — 

Dark. 

light. 

Blue. 

Brown, 

Black. 

Gray. 

Red. 

White. 

Trinmied  white  (free  from  colored  edges,  stripes,  etc.). 
Linsey  flannels- 
Mixed. 
Dark. 

141957—20 6 


81 


82 


BEPOBT  ON  WOOLBK  BAG  TBADE. 


Linseys — Continued. 

Linsey  flannels — Continued. 
Lig^t. 
Blue. 
Brown. 
Black. 
Gray. 
Red. 

White,  (including  wool  ganzies). 
Linsey  knits  (including  cotton  sweaters) — 
Dark. 
Blue. 
Brown. 
Black. 
Green. 
Gray. 

Red. 

White  ganzies. 
Linsey  knits  (wool  faced,  cotton  backs) — 

Dark. 

Black. 

Blue. 

Brown. 

Green. 

Gray. 

Red. 

White. 
Seams: 

Rough  seams- 
Mixed. 

Light. 

Dark. 
Skirted  seams — 

Light  soft  woolens. 

Dark  soft  woolens. 

Light  cloth  and  worsted  (including  graded  for  color). 

Dark  cloth  and  worsted. 

Trimmers  and  seamers. 

NBW  WOOLEN  RAGS. 

New  woolen  clips,  ungraded: 

Miscellaneous  cuttings  of  wool  and  straight  cotton  materials,  mixed. 

Men's  wear — 
Wool  clips — 

Blue  and  black  worsted. 

Fine  merchant  tailor. 

Fine  clothing  house,  light  weight. 

Fine  clothing  house,  light  and  heavy  weight. 

Average  clothing  house  suitings. 

Average  clothing  house,  heavy  weights. 

Mackinaws. 


BEPORT  ON  WOOLEN  RAG  TRADE. 

New  woolen  clips,  ungraded— Continued. 
Men's  wear — Continued. 

Wool,  cotton  warp  and  cotton-carded  mixed- 
Merchant  tailor. 
Fine  clothing  house. 
Average  clothing  house  suitings. 
Average  clothing  house,  heavy  weights. 
Mackinaws. 
Cotton  warp  clips — 
I  Clothing  house. 

^  Mackinaws. 

Shirtings. 
Women's  wear — 
y  Wool  clips- 

Fine  cloak  and  suit  house,  including  serges. 
Fine  cloak  and  suit  house,  without  serges. 
Mixed  cloakings. 
Mixed  flannels. 
Mixed  serges. 
Wool,  cotton  warp  and  cotton  mixed- 
Fine  cloak  and  suit  house,  including  serges. 
Fine  cloalk  and  suit  house,  without  serges. 
Mixed  cloakings. 
Mixed  flannels. 
Mixed  serges. 
Cotton  warp  clips — 
Mixed  cloakings. 
Mixed  suitings. 
Mixed  flannels. 
Mixed  serges. 
Auto  and  carriage  clips — 
Wool. 

Wool  and  cotton  mixed. 
Cotton  warp. 
Felts  (mixed). 

L  WT       .     ,  ,  WOOLEN   HEADINGS — UNGRADED. 

Worsted  wool. 
Worsted: 

Wool  and  cotton  warp  mixed. 
.  Cotton  warp. 

Oily. 
Worsted  and  woolens  mixed. 

Worsteds  and  woolens  mixed,  containing  cotton  warp. 
Serge — 

Wool. 

Wool  and  cotton  warp  mixed. 

Oily. 

Cotton  warp. 
8eige  and  flannel  mixed. 

Serge  and  flannel  mixed,  containing  cotton  warp. 
All-wool  woolens — 

Mixed  fine. 

Mixed  coarse. 


83 


84 


BEPOBT  ON  WOOLEN  RAO  TRADE. 


RBPOBT  ON  WOOLEN  RAG  TRADE. 


86 


Woolens  containing  cotton  warp  mixed. 
Woolens — 

Cotton  warp. 
Oily. 
Flannel- 
Wool. 

Wool  and  cotton  warp  mixed. 
Cotton  warp. 
Graded  clips: 

Straight  materials — 
Bunting — 
Dark. 
Light. 
Blue. 
Red. 
White. 
Flags,  wool. 

Flags,  wool,  stitched  with  cotton. 
Cheviots — 
Mixed. 
Light. 
Black. 

Blue  (mixed) — 
Dark. 
Light. 
Brown. 
Green. 
Red. 
Tan. 
Delaines  (including  alpaca) — 
Mixed. 
Dark. 
Light. 

Black  and  white. 
White. 
Felta— 

Hard  (mixed) — 
Dark. 
White. 

Graded  for  other  colors. 
Soft  (mixed) — 
Dark. 
White. 

Graded  for  other  colors. 
Flannels — 
Mixed. 
Dark. 
Light. 
Black. 

Blue  (mixed) — 
Dark. 
Light. 
Indigo. 


Graded  clips — Continued. 

Straight  material — Continued. 
Flannels— Continued . 
Brown. 
Gray.  . 
Green. 
Oxford. 
Red  (mixed) — 

Maroon. 

Scarlet. 
White. 

Billiard  cloth. 
Homespuns — 
Mixed. 
Dark. 
Light  (mixed) — 

Coarse. 

Fine. 
Black  and  white  (mixed) — 

Coarse. 

Fine. 
Brown. 
Light  brown  and  white  (mixed) — 

Coarse. 

Fine. 
Kerseys — 
Mixed. 
Light. 
Black. 
Blue. 
Brown. 
Tan. 

Tan  coverts. 
White. 
Mackinaws — 
Mixed. 
All  wool. 
Cotton  warp. 
Palm  beach — 
Mixed. 
Dark. 
Light. 
Brown. 
Gray. 
Tan. 
White. 
Cool  cloth. 
Seiges — 
Mixed. 
Dark. 
Light  (mixed) — 

Tans  in,  free  of  black. 

Black  and  white. 


mtmsm 


86 


REPORT  ON  WOOLEN  RAG  TRADE, 


Graded  clips — Continued. 

Straight  materials — Continued. 
Serges — Continued. 
Black. 
Blue  (mixed) — 

Dark. 

Light. 
Brown. 
Green. 
Red. 
Tan. 
White. 

Edges  (classed  with  worsted  edges). 
Uniform  cloth — 
Mixed. 
Blue  (mixed) — 

Dark. 

Light. 

Indigo,  without  selvages. 
Letter  carrier  (cadet). 
Unions — 
Mixed. 
Mixed  graded  for  color  and  weight — 

Dark  (mixed) — 
Heavy  weight. 
Light  weight. 

Light  (mixed) — 
Heavy  weight. 
Light  weight. 

Black. 

Blue. 

Letter  carrier  (cadet). 

Brown. 

Gray. 

Green. 

Oxford. 

Tan. 

White. 
Blanket. 
Capmakers. 
Cotton  warp  cloakings  (including  chinchiUas) — 

Mixed. 

Dark. 

Light. 

Gray. 

Black. 

Blue. 

Brown. 

White. 
Cotton  warp  serges — 

Mixed. 

Light. 

Dark. 

Black  and  white. 


i  \ 


REPORT  ON  WOOLEN  RAG  TRADE. 

<}raded  clips — Continued. 

Straight  materials — Continued. 
Unions — Continued . 

Cotton>warp  serges — Continued. 

Black. 

Blue. 

Brown. 

Green. 

Red. 
Shoe  unions — 

Mixed. 

Light. 

Black. 

Brown. 

White. 
Shirting  flannel  unions — 

Mixed. 

Dark. 

Light. 

Blue. 

Gray. 
Worsted  unions — 

Mixed. 

Dark. 

Light. 

Black. 

Blue. 

Brown. 

Mercerized. 
Worsted  (wool) — 
Mixed 
Dark. 
Light  (mixed) — 

Black  and  white. 

Free  of  black. 
Black,  men's  (without  edges). 
Black,  ladies'  (without  edges). 
Blue  (without  edges). 
Brown. 
Gray  (smoke). 
Oxford. 
Edges,  including  serge — 

Mixed. 

Black. 

Blue. 
Silk  worsteds. 
Mixed  materials —  •       ' 

Graded  for  quality — 

Coarse  dark  clips,  ordinary. 

Coarse  dark  clips,  heavy  weight. 

Coarse  dark  clips,  including  oxfords. 

Coarse  light  clips,  No.  1  grade. 

Coarse  light  clip6,No.  2  grade. 

Coarse  black  and  white  clips,  including  gray. 


87 


88 


KEFORI  ON  WOOLSS  SiQ  TBAOE. 


BEPOBT  OH  WOOLESr  K&G  TRADE. 


89 


Graded  clips — Continued. 

Mixed  materials — Continued. 

Graded  for  quality — Continued. 

Coarse  brown  and  white  clips,  including  tan  shades. 
Fine  dark  heavy  weight  clips. 
Fine  dark  cloth  and  worsted  clips — 

All  light  weight,  free  of  edges. 

Light  and  heavy  weight  mixed. 
Fine  dark  heavy  and  light  weight  cloth,  including  some  wonted. 
Fine  dark  cloth  mixed,  including  oxfords. 
Fine  dark  cloth  and  worsted,  including  oxfords. 
Fine  light  cloth — 

Mixed. 

Black  and  white,  including  gray. 

Tan. 
Fine  light  cloth  and  worsted — 

Mixed. 

Black  and  white. 

Tan. 
Fine  mixed  clips  (colors,  weights,  and  materials) — 

All  light  weight. 

Some  heavy  weight. 

Heavy  weight. 
Graded  for  color — 
Black- 
Mixed. 

Flannels  and  serges. 

Flannels  and  worsteds. 

Worsteds  and  serges. 

Worsteds,  cheviots,  and  kerseys. 
Blue- 
Flannels  and  serges. 

Flannels  and  worsteds. 

Worsteds  and  serges. 

Worsteds,  cheviots,  and  kerseys. 
Brown — 

Mixed. 

Flannels  and  serges. 

Flannels  and  worsteds. 

Worsteds  and  serges. 

Worsteds,  cheviots,  and  kerseys. 
Green — 

Mixed. 

Flannels  and  serges. 

Flannels  and  worsteds. 

Worsteds  and  serges. 

Worsteds,  cheviots,  and  kerseys. 
Red  (same  subdivision  as  foregoing  colon). 
White  (same  subdivision  as  foregoing  colon). 

Cap  makers — 
Cap  pieces — 

Woreteds  and  serges  (mixed)  graded  for  color. 
Woolens  (mixed) — 
Light  weight. 
Heavy  weight. 


k 


Oraded  clips — Continued. 

Mixed  materials— Continued. 

Graded  for  quality— Continued. 
Cap  clips-^ 
Mixed. 
Light. 

Wonteds  (mixed) — 
Dark. 
Light. 
Black. 
Blue. 
Brown. 
Listings,  wool — 
Mixed. 
Dark. 
Light. 

Wool  and  cotton  warp  mixed.  . 
Cotton  warp 
Miscellaneous  additional  materials — 
Astrachans. 
Boucleys. 
Fur  felts. 
Plushes. 
Eiderdowns. 

Pants  bottoms  (mixed) — 
Woreteds  and  serges. 
Woolen. 
Cotton  warp. 
Silk  woolens. 

KHAKI  AND  FORESTRY  MATERIALS. 

New  clips: 

Khaki  Wool- 
Mixed  clips. 

Wonted  and  serge  clips. 

Suiting  clips. 

Overcoating  and  puttee  clips. 
Cap  cUps. 
Delaine  clips. 
Flannel  clips. 
Sweater  clips — 

Wool. 

Wool  and  cotton  mixed. 
Cotton  warp  wonted  and  serge  clips. 
Cotton  and  wool  puttee  clips. 
Headings: 

With  stitches — 

Mixed  woolens  and  wonteds. 

Wonted  and  serges. 

Suitings. 

Overcoatings. 

Overcoatings  and  suitings  mixed. 

Flannels. 

Cotton  warp  wonteds  and  serges. 


-aH 


•0 


KBPOKT  ON  WOOLEN  BAG  TRADE, 


Headings— Continued. 
Without  stitches — 

(Classed  as  khaki  clips  and  graded  accordingly.) 
Oily  headings — 

(A  deduction  of  not  less  than  5  per  cent  nor  more  than  40  per  cent  from  the- 
maximum  price  of  the  clean  grade  is  permissible,  proportioned  on  the  oih 
contained  in  the  lot  sold.) 
Old  cloth: 

Rough  mixed. 

Rough  caps. 

Skirted  mixed. 

Skirted  worsteds  and  serges. 

Skirted  woolens. 

Shirtings — 

Worsted  and  serge  rough. 

Worsted  and  serge  skirted. 
Sweaters  and  Jerseys — 

Wool, 

Cotton  and  wool  mixed. 


i 


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